Central banks globally are delving into blockchain technology, with the European Central Bank (ECB) as a prime example. Recently, the ECB conducted a blockchain trial for its central bank digital currency (CBDC) in collaboration with Zama, as stated by Nigel Smart, the firm's chief academic officer. Smart highlighted the challenge of liquidity matching, where banks ensure their financial inflows align with outflows to meet obligations. Zama, under Smart's leadership, focuses on fully homomorphic encryption (FHE) solutions for blockchain and AI. The firm's recent $73 million funding aims to enhance FHE tools for data privacy solutions. Multiparty computation (MPC) shows promise in supporting economies, with successful ECB experiments. Smart emphasized the growing interest in MPC technology within the financial sector, hinting at broader applications for major institutions. Could CBDCs pose a threat to cryptocurrencies? Read more AI-generated news on: https://app.chaingpt.org/news