French banking giant has launched a stable currency backed by euros

 

French

banking giant has launched

a stable currency backed by euros

Société Générale made an important contribution to its history as

the first major

banking institution to launch a stable currency to the public.

The new stablecoin was included

It is known as EUR CoinVertible (EURCV)

in the Butstamp platform for digital assets in Europe.

This stable currency relies solely on cash deposits held

by reputable offshore credit institutions.

Stablecoins have become the basis of

the digital asset industry

accounting for a large share of daily trading volume.

However

these currencies face two challenges EURCV seeks to solve.

The first challenge is the control of the market

by US dollar-backed stablecoins.

The three largest stable currencies 

Tether's USDT

Circle's USDC

and MakerDAO's DAI 

account for 94% of the market cap of $128 billion.

Despite some projects

attempts to overcome this dominance

by launching stable currencies backed by the euro

Japanese yen and other major currencies, they have had little success.

Jean-Marc Stinger, who leads Société Générale Forge

the bank's digital asset arm, believed that there was

a need for a stable currency denominated in euros.

According to Stinger

The cryptocurrency ecosystem focuses heavily on a few current stablecoins

90% of them

are denominated in US dollars. 

Accordingly, the Bank strongly believes that there

 is a place for a stable euro-denominated currency in this area.

Stinger notes that major stablecoins have now been issued

by projects that may raise doubts about their regulations.

Tether

was convicted of financial crimes in the United States and fined.

In comparison, EURCV is issued by one of

the world's most trusted financial institutions.

Compliance is expected to become more important in 2024

when the European Market

Framework in Cryptocurrency Assets (MiCA) begins.

Stinger asserts that EURCV's

design took into account the MiCA framework

and that it fully complies with its rules. It is believed that

there are very few MiCA compliant stablecoins currently.

Although Société Générale is not

the first large bank to issue a stable currency

America's largest bank, JPMorgan

issued

a JPM currency in 2019 to settle instant payments,

However

JPM Coin is only available to specific corporate clients

while EURCV currency will be available to

any interested user on the public exchange.

While current stablecoins

were used only in the digital asset system

the French Bank intends to expand its role to other sectors.

including digital bonds. 

Axa Investment Managers, a subsidiary of

the French insurer Axa

invested in digital bonds using EURCV this week.