Algorand has been selected to support a digital guarantees platform in Italy. Algorand is a proof-of-stake blockchain that is designed to provide more efficient transactions. The new platform is expected to become operational in early 2023 and is described as the first time an EU Member State will allow the use of blockchain technology for bank and insurance guarantees.
According to a release, the Bank of Italy and the Italian insurance authority IVASS, alongside 30+ financial institutions, engaged in an event in Milan to demonstrate how distributed ledger technology can be utilized for guarantees.
CETIF, the Research Center for Technologies, Innovations, and Finance of the Catholic University of Milan, hosted the event.
CETIF Advisory has been leading an effort to develop a blockchain-based open “Digital Sureties” platform that will serve the needs of Italy’s banking and insurance markets. Algorand is the only public blockchain that the Digital Sureties platform uses.
Proponents predict that a growing percentage of financial transactions will leverage DLT. As part of Italy’s National Recovery and Resilience Plan (NRRP), the EU allocated roughly €200 billion to Italy, the largest allocation made to any country, to be used for co-grants and co-loans as part of the EU Recovery Plan.
The EU launched the program to boost economic recovery following the Covid-19 crisis.
Federico Rajola, professor at CETIF, said they selected Algorand due to its level of innovation and security characteristics as well as its leadership in sustainability.
“Our goal is to help Italy not only recover from the economic impact of Covid-19, but also excel through innovation and leadership. Our ecosystemic projects are meant to help generate strategic platforms, such as the Digital Sureties platform supported by Algorand. We believe these platforms can and will dramatically contribute to the country’s competitive sustainability for the benefit of all.”
Silvio Micali, founder of Algorand, said they were honored and proud to be selected:
“Through Algorand’s technology, we can help solve for many critical issues facing financial institutions and governments across the world today, bringing opportunity and inclusion to communities in need everywhere.”