HomeBlockchainAlgorand was chosen for digital bank and insurance surety bonds

Algorand was chosen for digital bank and insurance surety bonds

Algorand announced that it has been chosen as the public Blockchain in Italy to be used for digital bank and insurance surety bonds. The project was developed by CETIF and supported by the Bank of Italy and IVASS.

Algorand is the new blockchain in Italy for digital bank and insurance surety bonds

There is increased adoption of Algorand, the Layer-1 public blockchain chosen as a tool to create a platform dedicated to digital bank and insurance surety bonds. This is being done by Italy, making it the first country in Europe to use blockchain technology for digital surety bonds with this new partnership. 

The new Algorand-based platform was developed by the Research Center for Technology, Innovation and Finance (CETIF) and is supported by the Bank of Italy and the Insurance Supervision Institute (IVASS).

And indeed, the CETIF Advisory is leading an ecosystem effort to develop an open blockchain-based “Digital Sureties” platform that will serve the needs of the Italian banking and insurance markets.

The new Algorand-based digital surety bond platform will be in place by 2023

The innovative project, which will ensure the use of Algorand’s blockchain by Italian banks and insurance companies, will be active from early 2023

Not only that, it appears that the platform will also be used as part of Italy’s National Recovery and Resilience Plan (NRP). This is an approximately €200 billion fund that the EU has earmarked for the Bel Paese to be used for joint grants and loans. The aim is to stimulate Italy’s economic recovery after the crisis resulting from the Covid19 pandemic. 

In this regard, Federico Rajola, professor at CETIF, said:

“We selected Algorand because of its unparalleled level of innovation and security among permissionless DLTs, as well as because of its leadership in sustainability. Our goal is to help Italy not only recover from the economic impact of Covid-19, but also excel through innovation and leadership. Our ecosystemic projects are meant to help generate strategic platforms, such as the Digital Sureties platform supported by Algorand. We believe these platforms can and will dramatically contribute to the country’s competitive sustainability for the benefit of all.”

Algorand founder Silvio Micali also commented on the new partnership:

“We are proud and honored to be the public blockchain chosen by the Digital Sureties platform of Italy. Through Algorand’s technology, we can help solve for many critical issues facing financial institutions and governments across the world today, bringing opportunity and inclusion to communities in need everywhere.”

The launch of the Cometa protocol

Earlier this month, Algorand also announced the launch of Cometa, the protocol that would have all the potential to solve the liquidity-related problem

It is one of Algorand’s most important concepts, enabling projects to attract liquidity cheaply and sustainably. Not only that, Cometa offers liquidity providers double trading fees and temporary loss protection. 

In other words, Cometa could be represented as a one-sided liquidity loan, in which projects borrow stablecoins or native tokens for liquidity and use the projects’ tokens as collateral. 

In this sense, the collateral does not remain idle, but rather is provided as liquidity to AMM. An innovative way to maximize capital efficiency

ALGO: how is the crypto’s price doing?

The 28th crypto by market capitalization, ALGO, still appears to be in a bearish market. 

With the collapse of FTX in early November, which saw the general crypto price dump, ALGO fell from $0.43 to the current $0.22, registering a 50% loss

Nonetheless, Algorand’s crypto has seen a lot of news in the meantime, but without yet receiving any proper appreciation from ALGO investors. 

Stefania Stimolo
Stefania Stimolo
Graduated in Marketing and Communication, Stefania is an explorer of innovative opportunities. She started out as a Sales Assistant for e-commerce, and in 2016 she began to develop a passion for the digital world, initially in the Network Marketing sector, where she discovered and became passionate about the ideals behind Bitcoin and Blockchain technology, which lead her to work as a copywriter and translator for ICO projects and blogs, and organize introductory courses.