ECB tests blockchain for liquidity matching [Video]

The European Central Bank (ECB) has been experimenting with the adoption of blockchain technology in multiparty computation (MPC) to enable liquidity matching.

A few years ago, the ECB contacted an academic team at KU Leuven to independently explore the feasibility of liquidity matching. Recently, the ECB completed a blockchain experiment for its central bank digital currency (CBDC), the digital euro.

Speaking at the FHE Summit in Brussels on July 10, Zama’s Chief Academic Officer, Nigel Smart, told attendees that the firm had collaborated with the ECB on a test project.

“We did one with the European Central Bank on liquidity matching,” said Smart. “And a number of applications on CBDCs have been actually to remove the central bank out of the equation and replace it with a blockchain.”

Liquidity matching refers to the process of aligning cash …