Algorand, considered one of the top Layer 1 crypto projects, has been selected to support an innovative digital guarantees platform in Italy that will be the first in the European Union (EU) to use blockchain for insurance and bank guarantees.
The company, Algorand Inc, participated in an event in Milan alongside the Bank of Italy, the Italian insurance authority IVASS (Istituto per la Vigilanza Sulle Assicurazioni), and over 30 financial institutions to demonstrate how bank and insurance guarantees can be issued using digital ledger technologies (DLT), also known as blockchain.
Digital guarantees are digital versions of traditional financial guarantees, such as letters of credit or performance bonds, which are used to assure one party that the other party will fulfill their obligations under a contract. By using blockchain technology, it is possible to create a secure, tamper-proof record of these guarantees, which can help reduce the risk of fraud and increase trust between transacting entities.
Blockchain as a Tool for Recovery
The platform will be called Digital Sureties and it will be operational in early 2023 and is expected to be used extensively as part of Italy’s National Recovery and Resilience Plan (NRRP). The European Union (EU) has allocated around €200bn ($243bn) to Italy as part of the EU Recovery Plan to boost the country’s economic recovery following the Covid-19 crisis. The amount is the biggest portion given to any EU member country.
The table below shows an outline of how the money will be spent. The report did not say how much will be allocated for Digital Sureties, but it seems to fall under digitization, innovation, competitiveness, and culture; which has a section budget of 46.3 billion Euros.
According to the Algorand website, the institutional-grade blockchain project is the first and only one to achieve decentralization, scalability, and security while being environmentally sustainable. Like most crypto projects it has suffered a big devaluation from its all-time high. It is currently trading for twenty cents, a big drop from a $3 all-time high.
But a good project will always keep on building despite the bear project:
- Algorand Ventures was introduced to provide funding and support to builders and investors in the ecosystem
- Support for withdrawals and deposits of USDC on Algorand on Binance
- The use of Algorand’s technology to promote meaningful financial and digital inclusion in Africa
Algorand is Showing How Institutions Can Use Blockchain.
The selection of Algorand to support the Digital Sureties platform is a testament to the blockchain project’s ability to deliver innovative solutions that meet the needs of financial institutions and governments around the world. Countries and institutions are slowly realizing that blockchain is not just a get-rich scheme, but rather an innovative technological tool that can address a lot of real world needs. This is not just a win for Algorand but for the whole crypto and blockchain industry.
Feature Image: Unplash