Algorand (ALGO) altcoin, It was up nearly 3% on Tuesday as layer 1 technology was chosen as blockchain to support a digital collateral platform in Italy.
ALGO cryptocurrency The price is trading at $0.2204 at the time of this writing.
Algorand Altcoin Ecosystem to Collaborate with Italian Banking and Insurance Institution
Algorand joined the Bank of Italy and Italian insurance authority IVASS on Tuesday at an event organized by the Center for Technology Innovations and Finance Research (CETIF) in Milan to discuss how bank and insurance coverage can be arranged on blockchains.
A bank guarantee is a type of financial support offered by a lending institution in which the lender guarantees that the debtor’s obligations will be met.
According to the statement, the new platform is expected to go into effect in early 2023, and this will be the first time a European Union (EU) member state has allowed the use of blockchain technology for bank and insurance guarantees.
“We chose Algorand for its leadership in sustainability as well as its unparalleled level of innovation and security among permissionless distributed ledger technologies,” CETIF professor Federico Rajola said in a statement.
This move is part of a large-scale initiative called the “EU Recovery Plan”, in which the EU has allocated nearly 200 billion euros to Italy. The program was launched with the aim of accelerating the economic recovery following the COVID-19 crisis. Italy received the largest aid ever to a country and also obtained the right of use for co-grants and co-loans.
According to the press release, “a significant percentage of bank and insurance coverages are expected to benefit from digital ledger technologies as part of Italy’s National Rescue and Resilience Plan.”
*Not investment advice.
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