As a seasoned financial analyst with over two decades of experience in traditional banking and fintech, I find this partnership between Societe Generale and Bitpanda intriguing. The integration of regulated stablecoins into the global financial market is a significant stride towards bridging the gap between conventional finance and the digital asset sector.
International banking corporation Societe Generale teams up with Austrian cryptocurrency intermediary Bitpanda to expand the availability of their euro-based stablecoin, EUR CoinVertible. This digital currency will adhere to the regulations outlined in the Markets in Crypto-Assets act.
As stated in a press release dated September 25, Bitpanda is set to collaborate with Societe Generale-FORGE, the blockchain branch of Societe Generale, on a long-term basis. The aim is to enhance the adoption and accessibility of regulated stablecoins.
European investors can now interact with EURCV stablecoins via the Bitpanda trading platform, granting them the opportunity to purchase, trade, and store this digital asset alongside others in their portfolio.
By implementing this change, Europeans will find it less complex to pour investments into digital currencies, as the MiCA Bill – a pioneering regulatory structure for cryptocurrency – approaches. This legislation is one of the European Union’s initiatives aimed at enhancing transparency and safeguarding the crypto market.
Jean-Marc Stenger, CEO of Societe Generale-FORGE, feels that the partnership between SG-FORGE and Bitpanda is crucial for their goal of introducing cryptocurrencies and stablecoins to the global financial market. He expressed confidence in their capacity to offer European clients a “reliable,” “secure,” and “user-friendly” digital asset for trading, settling transactions, and storing value.
As the scenery evolves, we’re seeing a growing link between conventional banking and digital currencies. Stablecoins, which are fully regulated, could serve as a connecting pathway for this integration. By collaborating with Societe Generale-FORGE, we aim to bring about this future more swiftly.
Lukas Enzersdorfer-Konrad
In agreement with Stenger’s positive outlook, Lukas Enzersdorfer-Konrad, Deputy CEO of Bitpanda, believes that European stablecoins will play a crucial role in shaping Europe’s digital future.
Back in April 2023, Societe Generale unveiled their intentions to introduce the EURCV stablecoin. As per initial reports, this stablecoin will be supported by an Ethereum-based blockchain infrastructure. The aim of launching EURCV is to facilitate a seamless connection between conventional financial markets and the digital asset industry, as envisioned by Societe Generale.
However, the announcement was met with skepticism from analysts and industry players alike.
Stasis, creators of the euro-backed stablecoin EURS, have voiced their apprehension about the potential risks and the issue of a “critical vulnerability” that can occur with stablecoins issued by traditional banks.
‘Main player’ criteria
At the European Blockchain Convention in Barcelona, crypto.news spoke with Enzersdorfer-Konrad who mentioned that Bitpanda only collaborates with major players within the financial sector. To illustrate, in Germany, Bitpanda recently teamed up with Deutsche Bank to handle customer deposits and withdrawals, as announced in June.
It was “clear” to Bitpanda that it needed to identify a similar top tier bank in France.
In this collaboration with Societe Generale, via its subsidiary SG Forge, it’s important to boost the acceptance of digital assets to make stablecoin transactions more seamless on our entire platform and theirs. Additionally, we aim to assist them in exploring other potential applications they might develop. Essentially, the partnership is about uniting a crypto-focused company with a well-established European banking group to accelerate digital asset adoption across the continent.
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2024-09-25 17:30