This is the first time an EU member state will use blockchain technology for bank and insurance guarantees, according to Algorand.
Layer-1 blockchain platform Algorand has been chosen as the public blockchain to support an “innovative digital guarantees platform” to be used in Italy’s banking and insurance markets.
The Algorand-supported platform is expected to launch in early 2023. According to Algorand’s Dec. 13 announcement, this is the first time a European Union member state will use blockchain technology for bank and insurance guarantees.
A bank guarantee is when a lending institution promises to cover a loss if a borrower defaults on a loan. It’s an alternative to providing a security bond or a deposit to a supplier or vendor. An insurance guarantee is similar but is offered by an insurance company rather than a bank.
Algorand said that blockchain technology was ideally suited for the “digital sureties” platform because of its fast, efficient, low-cost and scalable data transactions, as well as its ability to provide protection against fraud.
Source : [Algorand to support bank and insurance guarantees platform in Italy](cointelegraph.com/news/algorand-to-support-bank-and-insurance-guarantees-platform-in-italy) by Cointelegraph By Judith BannermanQuist - December 14, 2022