The blockchain company is the first new American FIFA sponsor in 11 years.
Algorand, a green blockchain tech company, has signed a sponsorship deal with FIFA, to sponsor the 2022 World Cup in Qatar.
Despite the fact that crypto is prohibited in Qatar, the huge sporting event will attract millions of viewers who are interested in cryptocurrencies and blockchain.
Silvio Micali, an MIT professor and Turing Award-winning cryptographer, invented the ecologically friendly proof-of-stake blockchain in 2017.
Algorandâs token, ALGOâs price increased by 20% after the news, reaching $0.72.
According to FIFA, the two firms are also forming a technical cooperation to assist FIFA in developing a cryptocurrency strategy, which will include marketing soccer-related non-fungible tokens (NFTs). Algorand will also assist FIFA in the development of a blockchain-based wallet.
âFrom the beginning, Algorand has focused on building technology that promotes inclusivity, opportunity, and transparency for all,â said Silvio Micali. âThis partnership with FIFA, the most globally recognized and distinguished organization in sports, will showcase the potential that the Algorand blockchain has to transform the way we all experience the worldâs game.â
The FIFA Womenâs World Cup in Australia and New Zealand in 2023 will also be sponsored by Algorand.
The blockchain company is the first new American FIFA sponsor in 11 years.
The value of the sponsorship contract is currently unknown, but FIFAâs total revenue objective for the current four-year cycle, which ends in Qatar, is set at $7 billion. The majority of FIFAâs revenue comes from World Cup-related sponsorships and licensing arrangements for the television, marketing, and hospitality industries.
The last time a new American sponsor joined was for the 2014 World Cup in Brazil, when Johnson & Johnson signed on.
FIFA Chief Business Officer Romy Gai said that this is the first time a blockchain company has sponsored the World Cup, and praised the companyâs âcutting-edge, sustainable, and transparentâ technology. âAlgorand is clearly a forward-looking, innovative partner that can help us achieve these goals.â
What is blockchain?
Blockchains enable non-editable data to be permanently recorded and distributed across digital networks. They promote innovation and ensure secure, untampered exchange of value and assets such as non-fungible tokens (NFTs) and digital assets held in blockchain-enabled wallets.
It essentially organises data into groups called blocks, each of which holds a set of data. Blocks have specific storage capabilities, and when theyâre full, theyâre closed and linked to the preceding block, producing a data chain known as the blockchain.
A Bitcoin Block, for example, contains information on the sender, receiver, and the amount of bitcoins to be transferred.
Cryptocurrency in Qatar
Crypto currency is a decentralised digital currency that can be used as a medium of trade over the internet. It is not governed by the government or regulated by a bank.
In Qatar, cryptocurrencies are prohibited on an institutional level. The Central Bank of Qatarâs (CBQ) Supervision and Control of Financial Institution Division issued a circular to all banks operating in the country in February 2018, warning them against trading in bitcoin.Â
Bitcoin, according to the circular, is illegal and unsupported by any central bank or government.
They added that trading cryptocurrency has a significant level of price volatility as well as the possibility of being utilised in financial crimes. Thus, they barred all Qatari banks from dealing with cryptocurrency, with fines imposed on violators.
However, there are hopes that this might change. The Qatar Investment Authorityâs Executive Officer Mansoor Bin Ebrahim Al Mahmoud told Bloomberg in June 2021 that the countryâs sovereign wealth fund is avoiding investing in one of the worldâs most volatile asset classes due to the âspeculationâ surrounding cryptocurrencies.
They âneed a bit of maturity before we make our view about investing in that spaceâ said Al Mahmoud
