Totalitarian Stablecoin, you dreamed it, Société Générale did it!

If you’re tempted by a stablecoin that allows its issuer to transfer, burn and manage your funds, CoinVertible (EURCV) launched last week by Société Générale might interest you. Indeed, analysis of the stablecoin’s code on the Ethereum blockchain (ETH) reveals notable inconsistencies and significant control of CoinVertible (EURCV) assets and transactions by Société Générale. Some observers are bluntly comparing the CoinVertible (EURCV) stablecoin to the CBDC.

CoinVertible (EURCV), the stablecoin controlled by a bank

Touted as an important step showing bank interest in digital assets, the CoinVertible (EURCV) stablecoin launched on April 20 by the general company is widely criticized by the actors of the crypto industry. Indeed, after careful analysis of the smart contracts, many observers consider the CoinVertible stablecoin (EURCV) to be in violation of the basic blockchain principle. On social networks, crypto actors are particularly pointing out the failings of the CoinVertible stablecoin (EURCV).

The Internet user alephv.eth for example, indicated that Société Générale needs to do a blockchain transaction to process approvals from CoinVertible stablecoin (EURCV) holders. This will allow Société Générale to decide whether or not to authorize a CoinVertible (EURCV) transaction.

In addition, the CoinVertible (EURCV) stablecoin grants significant control of funds to the Société Générale which can easily move or burn the funds of CoinVertible stablecoin (EURCV) holders.

CoinVertible (EURCV), a stablecoin or a CBDC?

Due to the high degree of centralization, many Internet users sometimes manage to wonder whether this stablecoin is a cryptocurrency or a Central Bank Digital Currencies (CBDC). This is particularly true of the Internet user 0xfoobar which states I’ve never seen worse than CoinVertible’s code.

The CoinVertible (EURCV) stablecoin has some similarities to the Central Bank Digital Currencies (CBDC). Indeed, the CoinVertible stablecoin (EURCV) is issued and controlled by the French bank Société Générale. This is also the case for Central Bank Digital Currencies (CBDCs), which are fully controlled by the central banks of the issuing countries.

On the other hand, stablecoin CoinVertible (EURCV) is subject to the same risk of manipulation as CBDCs. In China, for example, the CBDC issued by the country has an expiration date. Citizens are thus forced to use their funds as quickly as possible, or risk losing them forever. In the United States, concerns that the CBDC would roll back freedoms and pervert the economy were common. To this end, the Governor of Florida and a Senator from Utah are clearly opposed to it.

The launch of the CoinVertible stablecoin (EURCV) by Société Générale reveals the growing interest of banks in digital assets. This stablecoin is also a prime example of the need for banks to maintain control over their customers’ assets. Société Générale will have to choose between blockchain and control.