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Yesterday, a subsidiary of the French bank Societe Generale introduced the stablecoin Euro CoinVertible on Ethereum, but, as it turned out, the code of the smart contract was written very badly.
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Developers from the crypto community conducted an auditEURCV code. They found that when creating a stablecoin, one of the fundamental principles was the control over transactions in this token. Each transfer must be confirmed by a separate transaction from a centralized registrar, which is most likely controlled by the bank.
“They programmed the smart contract in such a way thatmust whitelist all users, process all transfers and even ERC-20 confirmations before approving the transaction itself. This is an amazing example of inefficiency for the sake of regulation,” writes a smart contract engineer under the pseudonym alephv.eth.
The colleague was supported by the founder of the NFT foobar project,who stated that it was "the worst code he's ever seen" and called it "a laughing stock". Cryptocurrency analyst Mason Versluis also wrote that the stablecoin code is “absolutely terrible” and suggested that Societe Generale stay away from the cryptocurrency industry.
And here is investor Ryan Berkman (Ryan Berckman)defended the French bank. He noted that Societe Generale is taking “first steps” in the crypto-currency field and when the developers gain more experience, they will change the smart contract code. He also expects more traditional banks to launch stablecoins on public blockchains.
Recall that the Euro CoinVertible stablecoin is pegged to the euro and is intended for qualified institutional investors of Societe Generale.