Societe Generale has discovered that despite the proliferation of cryptocurrency projects across the ecosystem, developing secure protocols is hard, and the crypto community can be unforgiving when they spot shoddy code.
Following Thursday’s announcement that the crypto division of the French banking and financial services firm had launched EUR CoinVertible (EURCV), a Euro-pegged stablecoin hosted on the Ethereum (ETH) blockchain, crypto coders took to Twitter to say how unimpressed they were with the new stablecoin.
“I read the code for the new Euro stablecoin and they decided the best option was for the bank to have to do an eth tx to process every single transfer…” wrote Twitter user alephv, who works as a smart contracts engineer for Delv. “It makes sense tbh, such a radical commitment to inefficiency in the name of regulation could only come from a French bank.”
A follow-up tweet from alephv only served to pile on the criticism even more. “I noticed something 100x funnier: They have to do a blockchain transaction to process your approvals. They coded it so they have to whitelist all users, process all user transfers, and even process your ERC20 approvals before they process your 'transferFrom'.”
For those unfamiliar with Ethereum transactions, each action requires a gas fee, which varies depending on the level of congestion on the network. So for each transaction mentioned by alephv, a fee would need to be paid and it would take time for the transaction to be processed. This means that operating with EURCV will be far more costly and time-consuming than traditional payment rails.
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