The European Central Bank is moving to build a unified European market for tokenised assets, warning that incompatible digital platforms could deepen fragmentation across Europe’s capital markets.

Speaking at a Deutsche Bundesbank symposium in Frankfurt, ECB Executive Board member Piero Cipollone said the central bank had moved from developing a vision for tokenised finance to implementation through its Pontes and Appia projects.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

Tokenisation Could Reshape Financial Markets

Distributed ledger technology (DLT) could make financial markets more efficient by allowing assets to be represented as programmable digital records and transferred around the clock with greater automation.

Europe’s financial infrastructure remains fragmented, with 31 central securities depositories, 14 central counterparties and 323 trading venues. More than 95% of securities transactions by volume and value were settled between parties within the same central securities depository in 2023, according to Cipollone.

Tokenisation could bring issuance, trading, clearing, settlement, custody and asset servicing into a more integrated digital environment. Smart contracts could also automate processes such as coupon payments, collateral transfers and compliance checks.

Tokenised Finance Moves Toward Wider Adoption

Global adoption is beginning to accelerate. Tokenised traditional assets recorded on public blockchains increased roughly fivefold between March 2025 and March 2026, Cipollone said.

In the U.S., one private platform processed an average of $354 billion in tokenised repo transactions per day in March 2026, four times its average daily volume a year earlier. European institutions are also developing tokenised bonds, deposits, collateral and settlement solutions.

The Eurosystem began accepting marketable assets issued through DLT-based services as eligible collateral at European central securities depositories in March. Despite that progress, tokenised real-world assets remain small compared with global financial markets and continue to face limited liquidity and secondary-market activity.

ECB Wants Central Bank Money At The Core

Cipollone identified fragmentation, the loss of central bank money as a settlement anchor and excessive dependence on external infrastructure as three key risks for Europe.

More than 50 Eurosystem trials and experiments involving 64 market participants in 2024 showed that central bank money could be used to settle transactions on DLT platforms. The ECB said the work confirmed that access to central bank money is a key condition for tokenised finance to develop safely and at scale.

“Central bank money does not carry credit or liquidity risk. What’s more, it serves as the common settlement anchor across the financial system,” Cipollone said.

Pontes And Appia Set The Framework

Pontes is designed to connect market-based DLT platforms with the Eurosystem’s TARGET Services, allowing the cash leg of transactions to settle in central bank money. The ECB plans to launch the service in September 2026, with operating hours eventually expanding and a 24/7 service planned by mid-2028.

Appia focuses on the broader architecture and governance of a European tokenised financial ecosystem. Its roadmap covers interoperability standards, collateral management, cross-border transactions, tokenised central bank money and the legal and regulatory framework. The ECB aims to produce a blueprint for the ecosystem by 2028.

The two projects are designed to work together. Pontes provides the near-term settlement infrastructure, while Appia addresses the longer-term architecture, standards and governance needed for an integrated market.

Common Standards Will Determine Success

Cipollone said successful expansion will depend on common standards and interoperability, cooperation between public and private sectors, and an integrated legal framework.

“Competition should be in services, quality and price, not through incompatible standards or walled gardens,” he said.

Technology alone will not eliminate fragmentation. European rules also need greater clarity on ownership rights, settlement finality, liability, custody, asset servicing and the enforceability of smart-contract outcomes.

“Technical interoperability without legal compatibility will remain incomplete and fail to overcome fragmentation,” Cipollone said.

For the ECB, the objective extends beyond modernising settlement. Coordinated infrastructure, common standards and a compatible legal framework could help create a more integrated and competitive European capital market.

Cyprus’ trade deficit widened 15.4% in the first half of 2026 as imports increased and exports declined, even as trade with countries outside the EU expanded during the second quarter. Imports reached €7.30 billion between January and June, up 8.8% from a year earlier, while exports fell 1.2% to €2.62 billion, according to the Cyprus Statistical Service (Cystat).

EU Trade Expands In Second Quarter

Extra-EU imports rose 9.9% in the second quarter from the previous three months to €701.8 billion, while exports increased 5.4% to €680 billion. Year on year, imports were up 11.7% and exports rose 4.5%.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

China remained the EU’s largest source of imports at €153.6 billion, or 21.9% of the total, followed by the United States at €98.7 billion and the United Kingdom at €43.4 billion. The United States was also the largest export market at €127.7 billion, ahead of the United Kingdom and Switzerland.

Cyprus Records Sharp Deficit In June

June brought another significant deterioration in Cyprus’ trade balance. Imports rose 11.9% year on year to €1.29 billion, while exports fell 9.9% to €463 million, producing a monthly deficit of about €826.3 million, almost 30% higher than in June 2025.

Imports from EU countries increased to €730.7 million from €615.1 million, while non-EU imports rose to €558.6 million. Exports to EU markets increased to €212 million, but shipments outside the bloc fell sharply to €251 million from €365.1 million.

May Exports Rebound

May provided a stronger export result, with total exports jumping 59.2% year on year to €521.6 million. Domestic exports rose 63.9% to €348.1 million, while exports of foreign products increased 50.5% to €173.5 million.

Industrial products accounted for €334.7 million of domestic exports, while agricultural exports fell to €12.2 million.

Mineral Fuels Lead Domestic Exports

Mineral fuels and oils remained Cyprus’ largest domestic export category during the first five months of 2026, generating €743.6 million, or 55.5% of the total. Cystat said these products were imported, processed in Cyprus and subsequently re-exported.

Halloumi accounted for €167.5 million, or 12.5%, while pharmaceutical products generated €144.2 million, or 10.8%.

Import Dependence Remains High

Cyprus imported €13.87 billion worth of goods and exported €5.58 billion in 2025, highlighting the country’s persistent trade imbalance.

Cystat said the June figures remain provisional, while several earlier monthly figures have been revised. The first-half data show that Cyprus’ reliance on imports remains significant despite stronger trade flows across the wider European economy.

Limassol municipality is investing €5.6 million in new vehicles and equipment as it replaces ageing machinery and upgrades cleaning and other municipal services.

Mayor Yiannis Armeftis presented part of the new fleet on Wednesday at the wholesale market. The renewal programme is intended to reduce maintenance costs and improve the reliability of services.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

70 Vehicles And Machines Planned

The programme covers 22 contracts signed between July 2024 and July 2026, with a combined value of about €5.6 million plus VAT. A total of 70 vehicles and pieces of machinery are being acquired, with 35 already delivered and the remainder expected during 2026 and 2027.

Cleaning services are a major focus of the investment. The municipality has received four self-propelled street sweepers, including one donated by XM, three electric pedestrian-operated sweepers, two vehicles with high-pressure washing systems and a self-propelled beach-cleaning machine.

Further deliveries will include four 19-cubic-metre refuse trucks, three 22-cubic-metre trucks, one 12-cubic-metre truck and a water tanker. Two additional self-propelled sweepers and three 22-cubic-metre refuse trucks are also planned once the remaining contracts are completed.

Technical Services Fleet Also Being Renewed

The upgrade extends beyond cleaning and waste collection. Technical services and municipal crews have already received six single-cab pickup trucks with tipping beds, one single-cab vehicle with a tipping or flat bed, three single-cab vehicles without tipping beds, three double-cab vehicles, one electric vehicle, seven passenger vehicles and three commercial vans.

Additional deliveries planned for 2026 and 2027 include a backhoe loader, 10 double-cab vehicles, eight pickup trucks, four single-cab vehicles with tipping beds and another electric vehicle.

Fire Engine Donated To Krasochoria Communities

Separately, Limassol municipality has delivered a fully equipped €40,000 fire engine to the Krasochoria cluster of communities.

Part of the purchase was financed through public donations collected last July following wildfires in the area, with the municipality covering the remaining cost.

The fleet programme is expected to continue through 2027 as the municipality completes the remaining vehicle and equipment contracts.

A new solar farm with a maximum capacity of 1,081 kilowatt-peak has been installed at the bicommunal Mia Milia wastewater treatment plant in Nicosia.

Solar generation will cover part of the facility’s electricity needs and is expected to reduce the environmental impact of its operations, according to the Nicosia district government.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

Solar Farm Now Connected To The Plant

The facility has now been connected to the plant’s electricity supply and is operational. The project is expected to support more sustainable wastewater management while reducing part of the plant’s reliance on conventional electricity.

Funding came from the European Union, while construction was carried out by the United Nations Development Programme.

Cyprus And Turkish Cypriot Authorities Coordinated The Connection

Connection works were coordinated and supervised by the team of Mehmet Harmanci, the Turkish Cypriot mayor of Nicosia, according to the district government.

Officials said they have maintained good coordination with Harmanci over the project and that all works required to connect the solar farm to the plant have now been completed.

The Mia Milia facility is a bicommunal wastewater treatment plant serving Nicosia. Its new solar installation adds renewable generation to the site while supporting efforts to reduce the environmental footprint of wastewater infrastructure.

Apple has updated its Mac Mini and Mac Studio desktops with new processors and higher AI performance as developers increasingly use Macs for local AI workloads. The new models are scheduled to ship on Sept. 22, weeks before the company is expected to introduce its next iPhone generation.

Macs Target Local AI Development

Developers and researchers are increasingly using Apple computers to run AI models locally, reducing reliance on cloud infrastructure. Mac Mini systems can support AI agent software, while Mac Studio machines are designed for more demanding model training and deployment workloads.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

Apple said its processors combine Neural Engines for machine learning with unified memory architecture designed to reduce performance bottlenecks. The company says the combination allows users to run and fine-tune larger AI models directly on their devices.

Mac Mini Gets First M6 Generation Chip

The updated Mac Mini can be configured with Apple’s M6 and M5 Pro processors, making it the company’s first computer with an M6-generation chip. The M6 is manufactured by Taiwan Semiconductor Manufacturing Co. (TSMC) using a 2-nanometer process.

The previous Mac Mini lineup offered M4, M4 Pro and M4 Max processors. Apple said the M5 Pro version of the new model can process large language model prompts 8.5 times faster than earlier Mac Mini Pro configurations.

Pricing has also increased. The new Mac Mini starts at $899, $100 more than the previous model, after Apple raised the price from $599 earlier this summer, citing higher memory costs.

Mac Studio Targets Larger AI Workloads

Mac Studio remains Apple’s highest-performance desktop without an integrated display, following the discontinuation of the Mac Pro earlier this year. New configurations include the M5 Max, which Apple says can run large language models nearly four times faster than the previous generation.

The M5 Ultra is available for users with heavier computing requirements. Apple says multiple Mac Studio systems using the Ultra chip can be connected to pool memory and run models with up to a trillion parameters.

Mac Studio with the M5 Max starts at $2,499, unchanged from the previous generation. The M5 Ultra configuration starts at $5,499, compared with at least $5,299 for the previous model using the M3 Ultra.

Apple Expands Its Local AI Hardware

The new desktops give developers and researchers more computing capacity for running AI models locally. Apple is also increasing the role of its custom processors and unified memory architecture in handling AI workloads without relying entirely on cloud-based computing.

Both Mac Mini and Mac Studio models are available for presale and are scheduled to begin shipping on Sept. 22.

Europe’s dependence on imported fossil fuels, volatile energy prices and geopolitical risks is putting energy security at the center of economic and industrial policy. For businesses, the cost and reliability of electricity are becoming increasingly important factors in competitiveness and investment decisions.

EU Plans To Double Electricity’s Share By 2040

Against this backdrop, the European Commission unveiled the Electrification Action Plan on July 17, 2026, as part of the Clean Industrial Deal and Affordable Energy Action Plan.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

Electricity currently accounts for about 23% of final energy consumption in the European Union and around 26% in Cyprus. The Commission aims to raise that share to about 46% by 2040, reducing reliance on fossil fuels and increasing the use of renewable electricity.

Brussels estimates that reaching the target could reduce fossil fuel imports by about €260 billion a year. The plan covers transport, buildings and industry, where electrification is expected to replace part of the current use of oil and natural gas.

Electrification To Expand Across Transport And Industry

The plan supports wider adoption of electric vehicles, heat pumps and other electric heating technologies. Industry would also increase the use of electric boilers, furnaces and industrial heat pumps.

Electrification will not be practical for every industrial process, however. In sectors where direct electrification remains technically or economically difficult, the Commission expects green hydrogen and other low-carbon fuels to play a complementary role.

Grids And Storage Are Key To The Transition

Higher electricity demand will require upgrades to Europe’s transmission and distribution networks. The Commission’s Grids Package is intended to accelerate grid investment, improve cross-border interconnections, expand smart metering and support digitalisation.

Energy storage will also become more important as renewable generation expands. Storage and hydrogen technologies can help manage fluctuations in renewable output, while demand-side management, energy communities and digital systems are expected to improve how electricity is produced and consumed.

Electricity Prices Will Shape The Pace

The Commission’s plan also focuses on the cost of electricity. Electrification is less likely to advance if electricity remains more expensive than competing fossil-fuel alternatives.

Proposed measures include reviewing network charges, using revenue from the Emissions Trading System more effectively, developing new financing tools and providing targeted incentives for investment in electric technologies.

Cyprus Faces A Different Set Of Constraints

For Cyprus, electrification could reduce exposure to imported fuels and support energy security, but the transition faces several infrastructure challenges. High electricity costs, strong solar generation and constraints around grids and storage will require additional investment as electricity takes a larger share of final energy demand.

The Federation of Employers and Industrialists (OEB) has been following European energy initiatives and contributing to discussions on their implications for businesses. The organisation has argued that electrification will require competitive electricity prices, modern infrastructure and predictable regulation to support private investment.

For Cyprus, the pace of electrification will therefore depend not only on the availability of renewable power, but also on grid investment, storage capacity, electricity prices and the regulatory framework for businesses.

Italy has revived debate over taxing banks’ rising profits after Deputy Prime Minister Matteo Salvini proposed an annual levy of about 5% for three years on the profits of the country’s 10 largest banks.

Salvini cited first-half results from Intesa Sanpaolo and UniCredit, which reported combined profits of nearly €12 billion. The proposed levy would apply to major banking groups and exclude smaller local banks as Italy discusses its 2027 budget.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

Cyprus Faces Renewed Pressure On Bank Tax

The proposal comes as Cyprus continues to debate whether banks should face an additional charge on higher profits. Several EU countries, including Spain and Hungary, have already introduced extraordinary taxes or levies on the banking sector, while Cyprus has not adopted a comparable measure.

AKEL has proposed a new solidarity levy on credit institutions, but the bill remains pending before Parliament. The renewed debate in other European countries could put additional attention on the issue in Cyprus.

Europe Has Tested Several Bank Levy Models

EU countries have used different approaches to taxing or charging banks. Lithuania introduced a temporary levy on higher net interest income, Latvia imposed a fee on performing home loans, and Estonia reached an agreement with banks on extraordinary distributions.

The European Commission has examined these measures and found concerns around fairness and market distortion, but no evidence that they caused systemic financial instability in the countries where they were introduced.

Banks across the EU also contribute to deposit guarantee schemes through mandatory payments. Those contributions are separate from taxes but represent an additional financial burden for the sector.

Cyprus Has Proposed Several Measures

AKEL proposed a 5% extraordinary levy on banks’ excess profits for 2024 and 2025 in 2024. The measure was expected to raise about €50 million annually for borrower support and housing programs, but Parliament rejected it on Dec. 12, 2024, in a vote of 25 in favour, 25 against and four abstentions.

In November 2025, AKEL introduced a revised bill covering the 2025 and 2026 tax years. The proposal would impose a 20% charge on increases in net interest income above 40% of the 2022 level.

AKEL argues that higher interest rates have increased borrowing costs for households and small businesses while widening the gap between lending and deposit rates.

ELAM has separately proposed increasing the special tax on banks based on total deposits from 0.0375% to 0.07%. The additional revenue would be directed toward state housing programs.

Banks Warn Of Higher Costs For Customers

The Cyprus Banks Association has argued that additional charges could ultimately affect customers through higher lending rates or lower deposit returns. Local banks already pay corporate tax, a special credit institution tax and contributions based on deposits, as well as payments to the Deposit Guarantee Fund.

Banks also face capital and supervisory requirements that affect their balance sheets and lending capacity, although these obligations are not taxes.

The European Central Bank has said eurozone banks currently have strong profitability, capital and liquidity positions. Average return on equity stood at about 9.8% in the second quarter of 2025.

ECB Warns Against Weakening Bank Capital

The ECB has also warned that windfall taxes need to be designed carefully. If additional charges significantly reduce the profits banks retain as capital, they could weaken financial resilience, limit lending capacity and affect competition.

Italy’s proposal has therefore renewed a broader European debate that is also relevant to Cyprus. Policymakers must weigh additional public revenue against the potential effects on bank capital, lending conditions and financial stability.

OpenAI said it has banned a cluster of ChatGPT accounts originating in Russia after identifying their use in a covert online influence campaign designed to spread misinformation.

The company said it uncovered the activity while reviewing AI-generated social media posts, a probe that ultimately revealed what it described as a far broader operation. In a blog post published Tuesday, OpenAI said the campaign was built around a website featuring copied and misattributed academic work, a so-called sovereignty index that portrayed Russia favorably, and efforts to conceal the operators’ Russian origins.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

A Broader Playbook For Influence Operations

The case underscores how generative AI is increasingly being used as an enabling tool in information operations, not merely as a content generator. According to OpenAI, the operators prompted ChatGPT in Russian to produce social media comments and posts that were later distributed across Substack, Telegram, X, Facebook and LinkedIn. The same operators also instructed the model to obscure linguistic clues that could reveal their identity or geographic origin.

OpenAI said the campaign centered on an organization called the International Burke Institute, or IBI. The institute’s website, the company said, featured articles copied from real academic sources, sometimes with false attribution. It also included a “sovereignty index” that praised Russia and criticized Western countries.

Why The Infrastructure Mattered More Than The Reach

While OpenAI said the immediate reach of the operation appeared limited, it stressed that the real significance lay in the infrastructure the operators had assembled. The campaign presented an apparently credible institution, complete with named experts, republished research and a proprietary risk index—elements that can be used to manufacture legitimacy at scale.

That distinction matters. In modern influence campaigns, credibility is often the product, not the byproduct. A polished website, a pseudo-academic veneer and coordinated social distribution can make false narratives appear institutional, even when the audience remains relatively small.

OpenAI said the episode illustrates how influence actors can use AI to support broader efforts to obscure authorship, build trust and elevate preferred narratives. It also noted that the use of AI can, paradoxically, expose the operation itself when the supporting infrastructure is scrutinized.

Part Of A Pattern Of Pro-Russia Activity

This is not the first time OpenAI has moved against accounts linked to pro-Russia activity. In February, the company said it shut down ChatGPT accounts associated with Rybar, a pro-Russia media organization that the U.K. government has described as partially coordinated by the Russian Presidential Administration and connected to Russian state interests.

OpenAI said it does not permit access to its models from Russia, but added that the operators in this case used VPNs to mask their location. CNBC has contacted the Russian embassy in London and Russia’s Foreign Ministry for comment.

The broader lesson for businesses, governments and platforms is clear: the next generation of influence campaigns may not rely on volume alone. They will rely on process, polish and the strategic use of AI to create the appearance of authority.

The value of fraudulent payments in Cyprus rose 16% year on year to almost €3.7 million in the second half of 2025, while the number of cases fell 5% to about 14,000, according to the Central Bank of Cyprus.

Across the euro area, around nine million fraudulent transactions were recorded during the same period, broadly unchanged from a year earlier. Their total value increased 8% to €1.9 billion.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

Cards Account For Most Cases, Transfers For Most Losses

Card payments represented 93% of fraudulent transactions in Cyprus, or about 13,000 cases, compared with 79% across the euro area. Credit transfers, however, accounted for the largest share of losses at €2 million, or 56% of the total.

Fraudulent card payments accounted for another €1.6 million, while all other payment instruments together represented less than €60,000. The Central Bank said the increase in fraud value partly reflected the broader growth in payment activity.

Credit Transfer Fraud Produces Larger Losses

Cyprus recorded the highest average value per fraudulent credit transfer in the euro area during the second half of 2025. Each fraudulent transfer averaged €6,300, compared with €1,800 across the euro area and €4,500 for credit transfers in Cyprus overall.

Payer manipulation accounted for 70% of credit transfer fraud cases. These authorised push payment scams typically involve fraudsters persuading customers to send money to accounts controlled by the perpetrators.

Unauthorised payments accounted for the remaining 30% of credit transfer cases. For cards and electronic money, unauthorised transactions represented 97% and 90% of fraud cases, respectively.

Instant Payments Add Another Risk

Fraud involving instant credit transfers was also more costly in Cyprus. The average fraudulent instant transfer was €3,400, compared with €1,500 for instant transfers overall.

Instant payments still represented a relatively small share of credit transfers, but their speed leaves less time to detect or stop suspicious transactions. Verification of Payee became mandatory for euro area payment service providers in October 2025, although its impact was not yet visible in the reporting period.

The system checks whether the recipient’s name corresponds with the IBAN before a payment is completed, helping reduce fraud and payment errors.

Online Payments Account For Most Card Fraud

Online transactions generated 96% of fraudulent card payments by number and 94% by value in Cyprus. Physical point-of-sale transactions accounted for just 4% of cases and 6% of their value.

Credit cards also recorded a fraud rate about 1.5 times higher than debit cards by both number and value. Higher credit limits and larger average transactions may partly explain the difference.

Strong Authentication Reduces Fraud Exposure

Transactions without Strong Customer Authentication had a fraud rate almost four times higher by number and nearly three times higher by value than payments where SCA was used.

SCA requires customers to verify their identity using at least two independent factors, such as a password, mobile device or biometric feature. Some transactions, including certain low-value payments and transactions involving providers outside the European Economic Area, remain exempt.

Cross-Border Payments Remain A Weak Point

Most payments in Cyprus are domestic, but fraudulent transactions across credit transfers, cards and electronic money were more often linked to accounts outside the country.

Cross-border card fraud was particularly pronounced, with the number of fraudulent transactions about 15 times higher than the domestic total. Recovering funds can become more difficult once payments move across jurisdictions.

Consumer Awareness Remains Part Of The Response

The Central Bank also points to financial education as part of the response to payment fraud. Cyprus’ national digital financial education portal, MoneyPedia, provides information on common scams and ways to identify and avoid them.

The data show a shift in the fraud landscape: fewer cases are being recorded, but successful incidents can result in significantly larger losses.

Etap Paphos is extending its domestic tourism campaign until mid-November after reaching more than 335,000 potential visitors across Cyprus during the May-August period.

Campaign Reaches 2.6 Million Impressions

The campaign generated more than 2.6 million impressions and 882,000 interactions between May and August, according to Etap Paphos. The initiative aims to encourage Cyprus residents to visit the district for short breaks and weekend trips outside the peak summer season.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

Promotional content has focused on Paphos’ beaches, natural areas, gastronomy, events and outdoor activities, mainly through Facebook and Instagram. Online competitions also attracted more than 85,000 participants.

Polis Chrysochous And Akamas In Focus

Two campaigns have focused specifically on Polis Chrysochous and the Akamas peninsula. Promotional material has highlighted their beaches, natural landscapes and rural setting, with an emphasis on visits outside the busiest summer months.

Campaign Shifts To Autumn Getaways

The extended campaign will promote short autumn trips for couples, solo travellers and families. Etap Paphos is also highlighting local food, nature trails, outdoor activities, events and festivals across the district.

“The coming months provide the perfect opportunity for rejuvenating seaside escapes,” the tourism board said, while also pointing to events and festivals taking place across Paphos.

Focus On Year-Round Tourism

Etap Paphos said the campaign is intended to support businesses and tourism professionals across the district by extending domestic demand beyond the traditional summer season.

The November extension will continue promoting Paphos’ coastline, countryside, gastronomy and outdoor activities as attractions for Cyprus residents during the autumn period.