Italy wants to use blockchain Algorand for guarantees
The Bank of Italy and IVASS have chosen the Algorand blockchain to demonstrate how distributed ledger technology can be used for guarantees.
Algorand has been selected to support a digital guarantee platform in Italy, with the new platform to be fully operational in 2023. Bank of Italy partnered with the Italian insurance authority IVASS and more than 30 other financial institutions to demonstrate the usability of distributed ledger technology for guarantees .
The event was organized by the Research Center for Technologies, Innovations and Finance of the Catholic University of Milan (CETIF). CETIF representatives quoted by crowdfundinsider.com revealed that they chose Algorand for its innovative features and security features, but also for its sustainability efforts. They also mentioned the Digital Sureties platform supported by Algorand, which will serve the needs of Italy’s banking and insurance markets.
More information about Algorand
Algorand is a proof-of-stake blockchain with a focus on sustainability. According to investopedia.com, the Algorand platform is designed to process multiple transactions quickly, and it can also host other cryptocurrencies and blockchain-based projects, making it a direct competitor to Ethereum. Algorand is an open-source blockchain, meaning anyone can see and contribute to the platform’s code.
Compared to Ethereum, both platforms provide infrastructure to support the development of other blockchain-based projects, use smart contracts and use proof-of-stake. However, they have two different betting and reward methods. The Algorand blockchain supports various projects, many of which focus on decentralized finance such as decentralized lending and trading. In addition, the Algorand blockchain supports other cryptocurrencies such as stablecoins.
Italy’s National Recovery and Resilience Plan (NRRP)
According to crowdfundinsider.com, the use of DLT in financial transactions is on an increasing trend. The news comes in the context of Italy’s National Recovery and Resilience Plan (NRRP), which was designed to tackle the crisis triggered by the COVID-19 pandemic. In addition, the plan involved a grant of USD 200 billion to Italy from the EU to support co-grant and co-loans.
According to europarl.europa.eu, measures under the plan are to be completed by 2026, and Italy has so far received 34.9% of resources (in the form of pre-financing and two payments for both grants and loans), which is above the EU average. A further eight payments each for grants and loans will depend on progress in the implementation of the plan.
The European Parliament, which was an advocate for the creation of a common EU recovery instrument, participates in inter-institutional forums for cooperation and discussion on its implementation and scrutinizes the work of the European Commission.
