Algorand has been chosen as the public blockchain to power an innovative digital guarantees platform in Italy.
At an event held in Milan, the team from Algorand joined the Bank of Italy and the Italian insurance authority IVASS, in addition to over 30 other financial institutions, to demonstrate how bank and insurance guarantees can be issued using digital ledger technologies (DLT), which are more commonly referred to as blockchains.
During the course of three days, the Research Center for Technologies, Innovations, and Finance (CETIF) at the Catholic University of Milan sponsored an event that included both talks and live demonstrations of various technological advancements.
CETIF Advisory has spearheaded an ecosystemic effort to address the requirements of Italy’s banking and insurance industries by developing an open “Digital Sureties” platform that is based on blockchain technology.
It is anticipated that the new platform will begin operations in 2023, and it would be the first time an EU Member State will authorize the use of blockchain technology for bank and insurance guarantee transactions. The Digital Sureties platform will only make use of one public blockchain, and that blockchain will be Algorand.
It is anticipated that a significant proportion of bank and insurance guarantees would make use of digital ledger technology as part of Italy’s National Recovery and Resilience Plan.
Fraud prevention solutions based on digital ledgers will be of assistance to banks and insurance companies in their efforts to adapt to the changes they are experiencing.
Compiled by Coinbold