Groupe Casino, a large retail company in France, has unveiled its plans to launch a Euro-indexed stablecoin. The firm has partnered with Tezos, an open-source platform and other major institutions to develop the coin. The stablecoin, which is backed by the Euro will have the ticker EURL.
Groupe Casino Plans to Launch its Stablecoin “Lugh”
The French retail behemoth, Groupe Casino, is proposing to launch a stablecoin based on the Euro. A stablecoin is a crypto asset that attempts to peg its value to another external asset like a fiat currency or commodities like gold, oil etc. This is usually done to reduce the volatility of the crypto asset.
As per a statement from Gregory Raymond, a French journalist, the long-standing retail firm plans to use the coin for its loyalty programs. The French retail firm owns a chain of stores across Latin America and France. This means that their customers will be able to use the coin to make purchases at the stores as well.
🔥 SCOOP @21Millions_ 🔥
Le @Groupe_Casino lance son stablecoin euro : Lugh
👉 D'abord réservé aux investisseurs cryptos
👉 Deviendra progressivement un consortium qui offrira un moyen de paiement et un programme de fidélité global dans les enseignes partenaires pic.twitter.com/cXShDJGAu5
— Grégory Raymond (@gregory_raymond) March 17, 2021
Groupe Casino Partners with Other Institutions
The stablecoin, dubbed the Lugh, was reportedly developed on the Tezos protocol. The firm revealed that it partnered with other major institutions to work on the project. Institutions involved include PricewaterhouseCoopers (PWC); Coinhouse, the crypto exchange; Nomadic Labs and Societe Generale.
The Lugh stablecoin will bear the ticker EURL. However, there is no news about the date fixed for the initial coin offering (ICO) yet. Nevertheless, there will be 500,000 coins available during the ICO, which is going to be sold only on Coinhouse for the duration of the testing phase. After the testing phase ends, the coin will be made available on other platforms as well.
The Banque de France (Bank of France) has also been actively developing a stabelcoin indexed to the Euro. A couple of months ago, the bank concluded a pilot program for its digital Euro. After which it was then issued by its central bank back in December.