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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.

Cyprus Company Registration: Two To Four Days, Unless Security Checks Intervene

Cyprus aims to register companies within two to four working days when applicants submit complete documentation. However, regulatory approvals, sanctions checks, foreign ownership and national security considerations can extend the process or prevent registration.

Energy, Commerce and Industry Minister Michael Damianou outlined the timeframe in a written response to MP Efrem Christou, who asked about company formation procedures and the checks required before approval.

Fast Registration Depends On Complete Documentation

Damianou said authorities seek to process complete applications within two to four working days, regardless of a company’s structural complexity. The timeframe also depends on whether applicants pay an additional fee for expedited processing.

According to the official incorporation requirements, the standard registration fee is €165, rising to €235 for companies without share capital. Expedited processing costs an additional €100.

Applicants must submit an approved company name, a memorandum and articles of association, and forms HE1, HE2 and HE3. Public companies must also provide form HE5.

Regulated Businesses Require Additional Approval

Companies operating in certain sectors must obtain prior clearance from the relevant authorities or professional bodies. These include medical and dental businesses, law firms, insurance and reinsurance companies, and firms supervised by the Cyprus Securities and Exchange Commission.

The Central Bank of Cyprus must also approve company names associated with payment institutions, electronic money and foreign exchange services. Additional restrictions apply to educational institutions using terms such as “university” or “college”, casino operators, broadcasters and wine producers.

Non-profit organisations seeking to register without “Limited” or “Ltd” in their names also require ministerial authorisation.

Sanctions And Foreign Ownership Trigger Extra Checks

Applications involving shareholders, directors or company secretaries subject to EU, UN or US sanctions receive additional scrutiny. Registration can proceed only if the competent sanctions authority does not prohibit it. Damianou noted that US sanctions are considered indirectly but have not been incorporated into Cyprus legislation in the same way as EU and UN restrictions.

Applications involving Turkish interests are also subject to additional review. Under procedures introduced around 20 years ago, the registrar must consult national security services before proceeding with registrations involving Turkish interests or businesses that could threaten the Republic’s security.

Damianou distinguished these cases from applications submitted by Turkish Cypriots, saying there is “no substantial difference” in how their registration documents are examined. Applications may nevertheless be refused if classified information raises concerns about national interests or national security.

Public Servants Face Separate Restrictions

Under Article 65 of the public service law, government employees cannot act as directors, company secretaries or shareholders in private or public companies without prior special permission from the finance minister.

Proposed Law Would Expand Registrar’s Powers

The government is also seeking to strengthen the Registrar of Companies’ authority to address potential security risks. An amendment to the companies law, submitted to Parliament on September 17, would allow the registrar to reject applications, refuse company filings or remove existing businesses from the register on grounds including national security, public order, public interest and the protection of state sovereignty.

The proposal, approved by the Council of Ministers on August 6, remains before the House commerce committee. It would allow authorities to withhold detailed justifications where disclosure could reveal sensitive information, while informing affected companies of the general grounds for decisions.

The bill follows parliamentary discussions about companies controlled by non-EU nationals, particularly those with Turkish ultimate beneficial owners, and possible implications for property ownership through foreign-controlled businesses. Further details are available in the proposed amendment and earlier parliamentary reporting.

Balancing Investment And Oversight

Cyprus is seeking to maintain an efficient company registration process while strengthening checks on ownership, sanctions compliance and potential security risks.

The two-to-four-day target supports the country’s appeal to entrepreneurs and international investors, but the actual timeline depends on the nature of the business, the documentation submitted and any additional regulatory or security reviews required.

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