Listing of Societe Generale's Controversial Stablecoin on Bitstamp

Societe Generale to Launch Stablecoin on Bitstamp

French bank Societe Generale is set to be the first to offer a stablecoin on a cryptocurrency exchange. The stablecoin, called EUR CoinVertible, will be available on Bitstamp starting from December 6, 2023. Societe Generale Forge CEO Jean-Marc Stenger stated that the crypto ecosystem is currently dominated by a few stablecoins, with most of them denominated in US dollars. He believes there is room for a euro-denominated stablecoin offered by a bank.

Focus on Trades Settlement in Digital Bonds and Funds

Societe Generale aims to make its stablecoin widely available for trades settlement in digital bonds and funds. This approach differs from JPMorgan’s JPM Coin, which has a different use case. Societe Generale recently issued $11 million worth of senior preferred unsecured bonds on the Ethereum blockchain, with AXA Investment Managers and Generali Investments fully subscribing to the related security tokens.

Concerns Raised by the Crypto Community

However, the launch of the bank-controlled stablecoin has faced criticism from the crypto community. Observers who analyzed the smart contract code for EUR CoinVertible discovered that transactions must first be authorized by a centralized registrar before they can be completed. This has raised concerns about centralization and prompted some to label the code as “absolutely horrible.” Critics have advised Societe Generale to reconsider its foray into crypto.

Hot Take: Societe Generale Takes a Risk with Its Stablecoin

Societe Generale’s decision to launch its own stablecoin on Bitstamp marks an important step for traditional banks entering the cryptocurrency market. By offering a euro-denominated stablecoin, the bank aims to provide an alternative to the dominant US dollar-based stablecoins. However, concerns raised by the crypto community regarding centralization and the smart contract code must be addressed for the stablecoin to gain wider acceptance. Societe Generale will need to demonstrate transparency and security to win over skeptics and establish itself as a trusted player in the crypto space.