•Societe Generale’s Crypto Division has launched EUR CoinVertible, a euro-denominated stablecoin.
•STASIS CEO has voiced skepticism about the potential risks and “single point of failure” problem associated with commercial bank-issued stablecoins.
•Societe Generale–FORGE remains confident in its new stablecoin and believes it will increase trust and confidence in the native crypto ecosystem.
Societe Generale’s EUR CoinVertible Stablecoin Launch
Societe Generale’s Crypto Division (SG-FORGE) has announced the launch of EUR CoinVertible, a euro-denominated stablecoin, which aims to bridge the gap between traditional capital markets and the digital assets ecosystem. The EUR CoinVertible is designed to address growing client needs for on-chain transactions, corporate treasury, cash management, cash pooling activities, and intraday liquidity needs. It is built on the ethereum (ETH) public blockchain and is compliant with the French legal framework for digital assets.
STASIS CEO Criticism
However, STASIS CEO has voiced skepticism about potential risks and “single point of failure” problem associated with commercial bank-issued stablecoins such as EuroGermany’s Bankhaus von der Heydt’s EURB. According to him, the strength of stablecoins lies in isolating users from risks posed by one particular commercial bank by using a clearing house backed by Central Banks instead.
EUR CoinVertible Features
The features of EUR CoinVertible include a secure legal structure; stringent collateral eligibility criteria; daily transparency on amount and collateral positions; interoperability with traditional systems and financial practices.
SG-FORGE Confidence
Despite criticism from STASIS CEO, Societe Generale–FORGE remains confident in its new stablecoin stating that it will be a key element to increase trust and confidence in the native crypto ecosystem.
Conclusion
It remains to be seen whether Societe Generale’s EUR CoinVertible will overcome challenges posed by STASIS CEO regarding potential risks posed by commercial bank-issued stablecoins due to their “single point of failure” problem or not. Nonetheless, market participants must carefully assess these risks before engaging with any such asset class going forward.