French Stablecoin Faces Criticism from Ethereum Developers
Two Ethereum developers have expressed their opinions on a new European stablecoin that was recently launched on the Ethereum network.
The stablecoin, called EUR CoinVertible (EURCV), is backed by the Euro and was created by the French financial services company Societe Generale.
The pseudonymous ETH developer known as “0xfoobar” criticized the stablecoin’s transfer mechanism, saying that every ERC20 transfer had to be approved in a separate ETH transaction submitted by a centralized registrar.
France launched a stablecoin on Ethereum and it's the worst code I've ever seen
Every ERC20 single transfer has to be approved in a separate eth tx submitted by a centralized registrar
— foobar (@0xfoobar) April 20, 2023
The developer called the stablecoin’s code “the worst” they had ever seen and questioned whether it was truly a viable CBDC (central bank digital currency).
Another Ethereum developer, known as “aleph_v”, also criticized the stablecoin’s transfer mechanism, stating that the protocol was inefficient and that such tight regulations could only come from a French bank. Aleph_v also noted that the stablecoin’s code was coded in a way that required a blockchain transaction to process approvals.
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' lmao https://t.co/AhGNK4HHC7 pic.twitter.com/0QEFXWISL8
— alephv.eth (@alpeh_v) April 20, 2023
According to the developer, the stablecoin’s code requires whitelisting of all users and processing of all user transfers, as well as the processing of ERC20 approvals before “transferFrom” could be processed.
These criticisms come after French President Emmanuel Macron called for Europe to reduce its reliance on the US dollar.
Launching a stablecoin backed by the Euro suggests that France is taking steps to achieve this goal. However, the criticisms by the Ethereum developers suggest that the stablecoin may face challenges in achieving widespread adoption due to its inefficient transfer mechanism and code.