In order to support the digital guarantee platform, Algorand (ALGO) is about to launch a Layer-1 blockchain platform in early 2023 that serves as a use in the banking and insurance market in Italy.
For the first time for a European Union (EU) member state, they will apply blockchain technology for bank guarantees and insurance.
In context, a bank guarantee is an agreement for the lending company to be responsible for covering a certain amount of losses if the borrower fails to pay the loan while the insurance guarantee is slightly different because it is offered by the insurance company.
One of the purposes of the following is to provide bonds or deposits to suppliers and vendors safely.
Explained Algorand, the blockchain technology corresponds to the "Digital Sureties" platform that creates fast, efficient, low-cost data transactions and protects users from any fraud.
The blockchain-backed Digital Sureties platform is Italy's National Recovery and Resilience Plan (NRRP) developed by the Center for Research in Technology, Innovation and Finance of the Catholic University of Milan (CETIF) to rebuild the country's economy after the COVID-19 crisis.
According to professor at CETIF, Federico Rahola believes that Algorand can help restore the Italian economy and further develop the country's competitiveness in the future.
