- Euro stablecoin ‘EURCV’ has received serious criticism from crypto developers.
- The Ethereum-backed stablecoin is available strictly to qualified institutional clientele.
- EURCV aims to bridge the gap between traditional capital markets and digital assets.
EURCV, Societe Generale’s (SG) euro stablecoin, has flaws in its smart contract, as identified by many crypto developers.
On April 20, Societe Generale said that EURCV would be restricted to investors who are onboarded by the group via its current compliance procedures. SG also claimed that it is the first ever institutional stablecoin that’s been deployed on a public blockchain.
Cygaar, a software engineer, found that the bank can take as well as burn all the money of its users via some functions in its smart contract.
He shared that Societe Generale was way better off using JPM’s internal system, Onyx, or any internal db, as they are looking for a centralized settlement layer.
Alephv.eth, a pseudonymous smart contract engineer, also mentioned the concern and added that the reason behind coding is to whitelist all users, process users’ transfers alongside processing ERC20 approvals before processing the ‘transferFrom.’
As a result, the speed of transaction for the stablecoin besides complicating the entire procedure.
Scott Mitchell, Origin Protocol developer, added that this won’t work on Ethereum if viewed from an economic outlook. Even if validate transactions are batched and low gas is awaited, it will cost a lot at scale.
Patrick Collins, a blockend engineer with Cyfrin Audits, said that not using customer errors has been the worst part.
Lastly, Mason Versluis, a crypto investor, called the codes extremely horrible.
Meanwhile, SG Forge said it is catering to the rising demand from clients who want a powerful settlement asset for on-chain transactions and a means for on-chain liquidity funding as well as refinancing.