The Central Bank of Cyprus has welcomed the selection of Bank of Cyprus and JCC Payment Systems for the European Central Bank’s digital euro pilot, giving Cyprus a direct role in testing the bloc’s proposed digital currency.
Both Cyprus-based payment service providers are among 36 institutions selected across the euro area to participate in the next phase of the project, which forms part of the Eurosystem’s preparations for a possible digital euro.
Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram
Cyprus Gains A Seat At The Table
In a statement, the Central Bank of Cyprus said it would work closely with both institutions and the ECB ahead of the pilot, describing their participation as an opportunity for Cyprus to help shape the future of digital payments in the euro area.
Scheduled to begin in the second half of 2027, the pilot will run for 12 months. During that period, participating payment service providers will test a beta version of the digital euro alongside the ECB and national central banks.
Testing Functionality Before Any Issuance Decision
Designed to evaluate the digital euro’s technical performance, operational framework and user experience, the programme will help refine the project’s design before any decision is taken on its launch.
According to the ECB, the beta version will closely resemble the digital euro proposed under draft legislation, although it will not have legal tender status.
More than 50 payment service providers applied after the ECB opened the selection process in March 2026. From those applications, 36 institutions were chosen to reflect a broad mix of business models and company sizes across the euro area.
Private Sector Interest Signals Momentum
“The strong market interest in the pilot shows the private sector’s readiness to engage actively and quickly advance with the digital euro project to strengthen the European payments landscape,” said ECB Executive Board member Piero Cipollone, who chairs the High-Level Task Force on a digital euro.
“We look forward to deeper engagement as we work with and learn alongside European payment service providers in developing a secure, efficient and inclusive digital euro,” he added.
Selected institutions will test different parts of the ecosystem. Some will provide beta digital euro services, including opening accounts and processing payments, while others will enable merchants to accept digital euro transactions. Several participants will perform both roles.
A Pan-European Testing Network
Alongside the ECB, the pilot will involve the Central Bank of Cyprus and the other 18 national central banks across the euro area.
Testing will include central bank staff, participating payment providers, merchants and e-commerce businesses. Participants will be able to make person-to-person payments both online and offline, as well as purchases at physical points of sale and through online retailers.
What Comes Next
Feedback gathered during the pilot will help refine the digital euro’s design and improve the user experience before any final decision on its introduction.
Bank of Cyprus and JCC Payment Systems will now work with the Central Bank of Cyprus and the ECB to complete preparations ahead of the pilot’s launch in 2027.
