The Algorand blockchain has been chosen to provide an innovative digital assurance platform for Italy’s banking and insurance sectors. Cryptocurrencies are becoming more popular and widely used. Adoption and real-world use cases affect an asset’s price and durability. As the world moves toward a cashless society, Bitcoin is being accepted as a means of payment on various platforms.
Just in: Algorand has been selected to be the public blockchain that will support an innovative digital guarantees platform in Italy.
— Algorand (@Algorand) December 13, 2022
Altcoins are also finding use in a variety of industries, including gaming, DeFi services, and the gathering of NFTs. Although cryptocurrency opponents are eager to point out faults such as volatility and frequent hacks, the market is still growing. Since cryptocurrencies have gotten entangled with practically every industry, it isn’t easy to picture a future without them.
Some investors predict cryptocurrency will soon control the globe and become even more relevant. Service providers and corporations such as Tesla accept cryptocurrency as payment, and the trend is expanding to other countries.
Italy’s Banking and Insurance Sectors Will Collaborate With Algorand
The platform will go live in early 2023. It is the first of its type since it is the first time a European Union member state would use blockchain technology for insurance and banking guarantees. A bank guarantee is an arrangement in which an institution promises to reimburse damages incurred due to a borrower’s loan failure. It is a feasible alternative to security bonds or vendor deposits.
Insurance guarantees are similar, except insurance companies provide them. Again, Algorand will fill this function, owing to its efficient, fast, and low-cost network. The highly protected blockchain will also safeguard these institutions from fraud.
The Catholic University of Milan’s research center on Technologies, Finance, and Innovation created this revolutionary platform. The initiative is in line with Italy’s National Resilience and Recovery Plan. This strategy intends to promote Italy’s economic recovery after the COVID-19 epidemic. Following a protocol change, Algorand has improved its transaction speed, cross-chain capability, and processing capacity.