Bank of Italy Chooses Algorand for Digital Guarantee Platform
Algorand joined the Bank of Italy and Italian insurance agency IVASS at an event hosted by the Research Center for Technologies Innovations and Finance (CETIF) in Milan on Tuesday to showcase how bank and insurance guarantees can be issued on blockchains.
The new platform is expected to come into force in early 2023 and will be the first time a European Union (EU) member state has allowed the use of blockchain technology for bank and insurance guarantees, the statement said. The move is part of a broader EU initiative dubbed the EU Recovery Plan, under which the EU has committed around €200 bln to Italy.
A pilot project has shown that the use of blockchain technology and a distributed ledger can lead to a reduction in fraud by about 30% and transaction costs from 10% to more than 50%, depending on the number of transactions processed.
Image: Central Banking