The Casino distribution group is partnering with PwC, Société Générale, CoinHouse and Nomadic Labs (Tezos) to launch the first euro-backed cryptocurrency, the Lugh stablecoin.
This is a first in France, but not in Europe. The German Bankhaus von der Heydt was the first, in December 2020, to issue a euro stablecoin using the Stellar blockchain. Casino follows suit, but this time on the Tezos blockchain.
The announcement is major nonetheless, as reported in the 21 Millions subscription newsletter. Thus, the Lugh or $ EURL, is a stablecoin backed by the euro. This is currently available exclusively from the CoinHouse exchange.
Lugh, a crypto investment, but at the beginning only
The Lugh is therefore addressed, during this first phase, to crypto investors. In a second step, other exchanges can in turn offer their customers to acquire this stablecoin. But only “ within a few months after the testing phase. »
This launch should therefore be part of the initiative of the Casino distribution group, which has various brands in France, such as Cdiscount in e-commerce, or Monoprix. But for this project, the distributor has surrounded himself with partners.
Among them, a large French bank, Société Générale. Stablecoins are subject to specific regulation. The banking group thus ensures account maintenance. Each Lugh issued must correspond to one euro held in reserve in an account.
The PwC firm will intervene for the audit component. It is he who will carry out the control of the operation of the Lugh and the blockchain. Each month, within this framework, it will publish a certificate certifying the content of the reserve in euros. SCEME acts as a regulated infrastructure provider for stablecoin.
A means of payment and loyalty within 12 to 24 months
As for Nomadic Labs, it is quite simply the French expert in the Tezos blockchain, on which the stablecoin is therefore issued. The participation of these different French actors is essential for questions of confidence and regulation.
The ambition of the Lugh is Europe nonetheless. Thanks to its cryptocurrency and its subsidiary of the same name, Casino hopes to convince new partners and promote its adoption at European level.
« Within 12 to 24 months, Lugh will become a means of payment and loyalty in stores “, Explain Gregory Raymond of 21 Million. The stablecoin ” will replace the loyalty points and they can be spent in all the brands that have chosen to join the consortium. »