The Bank of Italy, together with the Research Center for Technology, Innovation and Finance of the Catholic University of Milan (CETIF), has launched the development of an open platform “Digital guarantees” based on the Algorand blockchain.
The platform is going to serve the needs of the country’s banking and insurance markets. Last year, more than 50 insurers took part in the sandbox where they used DLT distributed ledger technology for a digital guarantee. At the same time, more than 350 contracts with guarantees from €10,000 to €1.4 million were concluded in four months.
The pilot project has shown, developers rejoice, 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.
The new platform is expected to be operational in early 2023 and will be the first time that an EU state will allow the use of blockchain technology for bank and insurance guarantees.
In October, the Philippine bank UnionBank announced the beginning of the implementation of distributed ledger technology to optimize the activities of small and medium-sized enterprises, as well as experiments with the metaverse.
Source: Bits
I am an experienced journalist, writer, and editor with a passion for finance and business news. I have been working in the journalism field for over 6 years, covering a variety of topics from finance to technology. As an author at World Stock Market, I specialize in finance business-related topics.
