# Societe Generale Introduces Euro Stablecoin: A Critique
Stablecoins, which are digital tokens that typically peg their value to a stable asset like the US dollar, have become increasingly popular in recent years. However, there are numerous ways in which they can be criticized, from a lack of true decentralization to hidden risks. The latest stablecoin to draw controversy is the EUR CoinVertible (EURCV), which was recently launched by French bank Societe Generale (SGF). In this article, we will explore the introduction of this stablecoin and the criticisms it has faced.
## Introduction: Societe Generale Launches EURCV Stablecoin
SGF, a subsidiary of Societe Generale that focuses on digital assets, recently launched the EURCV stablecoin on Ethereum. According to a press release, this is the “first institutional stablecoin on a public blockchain”. The token is exclusively available to Societe Generale’s existing investors and is intended to provide access to the bank’s services around cash management, cash pooling, liquidity funding, and loan refinancing. Over the next few weeks, SGF plans to measure interest from clients and assess how adoption can be improved.
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## The Problem with EURCV: Too Centralized?
Despite being a newly launched project, EURCV has already received significant criticism. One of the main points of contention is that each transaction using EURCV must be confirmed with a second transaction via a central registration process, in addition to being confirmed on the Ethereum blockchain. In other words, this is a centralized project on a decentralized blockchain. Pseudonymous DeFi developer foobar mocked the project on Twitter, asking if it was Societe Generale’s attempt at a Central Bank Digital Currency (CBDC).
## Criticism of EURCV Continues
Other critics have voiced concerns over EURCV’s Know-Your-Customer (KYC) procedures, which could be used to block certain transactions. ETH investor Ryan Berckmans has suggested that stablecoins without KYC requirements are superior, and that SGF’s stablecoin will not be able to compete with other tokens in the market. He also warned that EURCV could potentially come up with a censorship list, similar to the one developed by USDC-issuer Circle at the request of the US government, which would prevent users from sending tokens to certain addresses.
## Conclusion: Is EURCV Doomed to Fail?
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Although it is too early to predict the success or failure of EURCV, the criticisms it has faced should not be taken lightly. The centralized nature of the project, combined with potential issues around KYC and censorship, could make it less appealing to some investors. However, Societe Generale may be able to address these concerns over time and create a more robust stablecoin that meets the needs of its clients.