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On December 6, 2023, Societe Generale will launch EUR CoinVertible, a stablecoin, on the Bitstamp cryptocurrency market, marking a significant milestone in the financial industry.
Jean-Marc Stenger, CEO of Societe Generale Forge, emphasized the bank’s dedication to ending the dominance of current stablecoins, especially those backed by dollars, which presently account for an astounding 90% of the market. Stenger emphasized the necessity for variety in the cryptocurrency ecosystem and voiced the opinion that there is a sizable market for a stablecoin based in euros.
Stenger proceeded to explain the bank’s goals for EUR CoinVertible, emphasizing that they wanted to see it widely used in trade settlements involving digital money and bonds. By taking a different strategy from JPMorgan with its JPM Coin, this strategic move emphasizes Societe Generale’s distinct position in the developing cryptocurrency market.
By releasing senior preferred unsecured bonds worth close to $11 million on the Ethereum blockchain with a three-year maturity, Societe Generale has already achieved progress in the cryptocurrency market. Interestingly, in a private placement, AXA Investment Managers and Generali Investments completely subscribed to the corresponding security tokens, with AXA Investment contributing €5 million in EURCV.
Notwithstanding these developments, the launch of the bank-controlled stablecoin has caused some anxiety among cryptocurrency enthusiasts. Critics point out that before transactions can be completed, the EURCV smart contract code needs permission from a centralized registrant, which is probably under the authority of the bank. Some experts have expressed disapproval of this centralization and called the smart contract code “absolutely horrible.”
Mason Versluis, a crypto researcher, did not mince words, advising Societe Generale to reconsider its approach, stating that the bank should “stop trying to weasel” into the crypto domain.