Italy is set to utilize Algorand’s blockchain technology in supporting its digital guarantees targeting insurance and banks. Italy’s announcement of Algorand support is a pioneering move in the EU to integrate blockchain-powered digital guarantees. Italy plans to launch the digital platform supported by the layer-1 blockchain at the onset of 2023.
Features of Algorand-Backed Digital Sureties
The EU member indicated that utilizing the Algorand-supported platform for the public blockchain would provide alternatives to conventional guarantees. The statement released by Italy indicated that the platform would mirror the bank sureties where a lender or insurance promises to reimburse funds whenever the borrower defaults on the loans.
Italy’s representatives at the brief session restated that its design would replicate the security bond extended to suppliers and vendors to avoid loss through defaulted payments.
Algorand’s statement later on December 13 illustrated the suitability of blockchain technology in offering digital sureties. The statement conveyed via its official Twitter account cited speed, efficiency, and affordability as achievable when utilizing the Algorand blockchain.
The statement added that Italy would benefit from the blockchain-powered digital platform with increased scalability of transactions’ data and safeguard against financial fraud. In particular, the executives present were informed of Alogrand’s upgrade in September to utilize state proofs and process 6000 transactions per second.
Also read:Algorand’s Suitability to Italy’s Recovery
The revelation of the Algorand-backed platform for digital guarantees occurred during the three-day Milan forum to showcase the viability of digital ledger technologies. The Bank of Italy led over 30 financial institutions in the forum hosted by the Research Center for Technologies, Innovations, and Finance (CETIF). Also present was the Italian insurance authority (IVASS), whose representatives restated that the digital sureties platform will yield critical input towards the country’s National Recovery and Resilience Plan (NRRP).
Banca d’Italia affirmed endorsing the digital sureties project to help Italy realize economic recovery using the €200B post-Covid stimulus allocated by the EU. The Banca d’Italia executive indicated that Algorand’s digital ledger technologies would help eliminate fraud that has locked guarantees issued in bank and insurance markets.
Algorand’s Cross-Chain Functionality
CETIF representative Federico Rajola hailed Algorand’s selection for its exceptional innovation, safety, and sustainable blockchain. In his address, Rajola reiterated that the permissionless blockchain would ease the post-Covid 19 recoveries. He considered such attributes critical to restoring Italy’s innovation and competitive sustainability excellence.
Algorand Inc. executive Silvio Micali reassured the representatives drawn from the insurance and lending entities of leveraging sustainable technology oriented to interoperability. Micali lauded Italy for selecting Algorand in delivering future financial products just as it assists over 2000 organizations in transforming DeFi, TradFi, and creator economies.
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