Allianz Is Examining a Token to Move Money Within Its Affiliates
Insurance behemoth Allianz has been experimenting with an internal token to move money around between its global affiliates without dealing with currency conversions and other costs and wastefulness. The development of the so-called "Allianz token" is being aided along by blockchain startup Adjoint, which built a proprietary blockchain for the project.
Oliver Volk, a blockchain expert at Allianz's reinsurance unit and representative to the B3i insurance blockchain consortium, reinforced that the token was very much on the agenda. He said, "Yes, we are thinking about a kind of Allianz token whereby money coming in will be converted to a token.But it's a very big animal and we don't know what kind of regulatory constraints there are." Volk said an Allianz token would be "very helpful to get rid of FX constraints and other stuff we have to optimize, especially if you talk to certain currencies which we do not accept at our headquarters and have to be reconverted."
The in-house digital token is a project of Allianz Global Corporate & Specialty (ACGS), the business-to-business part of the insurer. It developed as part of Allianz captive insurance blockchain project to distribute payments using Citigroup's CitiConnect API.
Alan Cabello, the innovation program manager for central and eastern Europe at Allianz AGCS, said," It's essentially about the legal way of moving money from one side of the world to the other.Because of regulation and governance, etc., you need to move it from one entity to the next to the next - and that takes time." The problem is broad, Cabello added. "Every single major industry and every major company has issues getting money from one side of the world to the other."
Cabello reiterated that the token though runs on the blockchain, has no relation to any cryptocurrency whatsoever.
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