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Cyprus Joins ECB Digital Euro Pilot As Bank Of Cyprus And JCC Payment Systems Selected

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.

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.

Meta’s Muse Charm Is More Than A Gimmick — It’s A Bet On Fashionable AI

Meta’s newly announced Muse Charm is already prompting a familiar question: is this a clever attempt to make AI feel more approachable to mainstream consumers, or simply the latest entry in a growing graveyard of flashy hardware that failed to catch on?

Early reactions have been mixed. But one thing is clear: the form factor is timely. In a market increasingly shaped by aesthetics, personalization, and nostalgia, the Charm arrives with the right visual language for the moment.

A Device Designed For A Generation That Likes To Carry Its Personality

For Gen Z consumers, especially, the idea of technology as an accessory is hardly far-fetched. In the post-Labubu era, dangling objects have become cultural currency — from keychains and mini plush toys to beauty products reimagined as bag charms. The appeal is not purely decorative. These items function as signals of identity.

That is precisely why the Charm may resonate. Like the beauty-bag charm trend seen across products such as lip glosses, hand sanitizers, and fragrances, the Muse Charm blends utility with self-expression. It is not just a device. It is a style object.

Hailey Bieber’s Rhode lip case helped push that idea into the mainstream by turning a lip product into something closer to a fashion accessory. The brand’s commercial success underscored how powerful that overlap can be: beauty and utility are no longer separate categories, but increasingly part of the same consumer logic.

The same goes for Labubu, the fuzzy collectible that evolved from niche toy to global phenomenon. While demand for the character may have cooled, the broader bag-charm category has not. Analysts now expect the global market for these accessories to surpass $1 billion by 2030.

The Charm Fits A Wider Retro-Tech Revival

Meta’s Muse Charm also taps into a broader retro-tech movement that has been gaining momentum. Digital cameras, flip phones, iPods, CDs, cassette tapes, wired earbuds, and even landline phones are all finding new life among younger consumers who are increasingly skeptical of always-on, algorithmically optimized technology.

That skepticism has created room for objects that feel tangible, controllable, and personal. For many young people, especially women driving a great deal of this trend, physical tech offers something the digital world often does not: a sense of ownership.

That is part of the appeal behind the growing popularity of so-called cyberdecks, DIY portable computers that are often decorated with jewels, flowers, stickers, pearls, and other embellishments. The point is not just function. It is intimacy.

The Apple Watch Trend Shows The Market Already Exists

There is another, more immediate reference point for Muse Charm: the growing TikTok-driven trend of turning older Apple Watches into keychains, pendants, and bag accessories. Across Amazon, Walmart, eBay, and Etsy, thousands of such products already exist, ranging from practical straps to decorative cases.

In many cases, these items are being worn less as gadgets and more as fashion objects. That distinction matters. It suggests the market is already primed for devices that blur the line between technology and accessory — especially when the technology is small enough to personalize and visible enough to signal taste.

In that sense, Meta is not inventing a new behavior so much as trying to package an existing one.

Meta’s Biggest Challenge Is Not Design. It Is Trust.

Still, good timing does not guarantee success. The biggest obstacle facing Muse Charm may not be product-market fit, but Meta itself.

The company has spent years eroding consumer trust through repeated privacy controversies, regulatory penalties, and public scrutiny over harms to minors. That history is difficult to separate from any new device that asks users to invite Meta even deeper into their daily lives.

And that is the central tension. If Muse Charm is positioned as a free or low-cost AI companion, the real currency may not be the hardware itself but the data it generates. Meta has said it plans to monetize Muse through a small transaction fee, but the broader business model is unmistakable: highly personalized advertising powered by highly personal behavior.

For consumers, the calculation may come down to a familiar tradeoff. The device may be playful, fashionable, and culturally on point. But whether users are willing to trust Meta with another layer of their lives is a far harder question.

That may ultimately determine whether Muse Charm becomes a breakout product — or just another well-designed gadget that could not overcome the baggage of the company behind it.

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