A senior official of cryptography firm Zama revealed at a recent summit that the company had collaborated with the European Central Bank for blockchain exploration.
Cryptography firm Zama has been in the news in recent months for announcing its plans to build solutions in blockchain. One of the firm’s officials has now claimed that they also collaborated with the European Central Bank (ECB) for blockchain exploration. Speaking at a summit, Zama’s Chief Academic Officer, Nigel Smart, shared the development.
He stated that Zama and the ECB worked on a central bank digital currency project. They worked on liquidity matching, said the official. However, he pointed out that liquidity matching was an issue for multiple parties operating on the same blockchain. Moreover, the issue arises because the entities are all encrypted on a blockchain.
The Zama executive said, “We did one with the European Central Bank on liquidity matching. […] 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.”
Smart also noted another subject they worked on, multiparty computation. He explained an example of the Finnish economy, which they worked on with the ECB. Besides, the ECB has recently implemented a travel rule for crypto firms. It may denote how they are constantly involved in the monitoring and regulation of crypto.
However, the ECB is also a proponent of blockchain adoption. ECB members have endorsed blockchain adoption in the past, and its many use cases. They are also working on a digital euro project, which is currently being researched.
The European Union has also taken a proactive stance in establishing a clear policy framework for blockchain. This ranges from regulation, encouraging the sector, building trust and fostering innovation in blockchain technology.
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