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

by THEFUTURE.TEAM

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.

Shein Targets $25 Billion Valuation In Hong Kong IPO As Growth Slows

by News Editor

Shein is reportedly targeting a valuation of around $25 billion in its planned Hong Kong IPO, a sharp decline from the nearly $100 billion valuation the online fashion retailer achieved in a 2022 fundraising round.

Two people familiar with the plans said the company was likely to target about $25 billion, while another source put the expected range at $25 billion to $28 billion based on the proposed price band.

IPO Valuation Falls Sharply

Shein plans to sell up to 8% of its shares in the offering, according to a person familiar with the plans. At a $25 billion valuation, that would translate into an IPO of as much as $2 billion.

The latest target is also below the $30 billion to $40 billion valuation the company was seeking earlier this month as it began meeting with potential investors.

Founded in China in 2012 and now headquartered in Singapore, Shein sells low-cost clothing to consumers in about 160 countries. The company is expected to launch its long-awaited Hong Kong IPO later this week.

Trade Restrictions Weigh On Growth

Shein’s valuation has come under pressure as major markets tighten rules affecting low-cost e-commerce shipments. The European Union, for example, has moved to impose additional fees on cheap parcels from platforms such as Shein and Temu. EU Tightens Rules On Low-Cost E-Commerce Parcels

In the U.S., the removal of an import duty exemption for small packages has also affected the company. Shein reported a $99 million quarterly loss in the first quarter of 2026 as sales growth slowed, while a one-time accounting charge further weighed on its results. Shein Reports First-Quarter Loss Ahead Of IPO

Investors Question Shein’s Growth Prospects

The steep reduction in valuation reflects growing concerns over slower growth, higher trade costs, regulatory pressure and stronger competition across global e-commerce.

Some investors who reviewed Shein’s recent financial statements or attended IPO presentations told Reuters they were skeptical that the company could return to the growth rates that supported its $98.2 billion valuation in 2022. Shein’s Slowing Growth Tests Investor Appetite

A lower IPO valuation could also affect Shein’s existing investors. Under the terms of its IPO filing, the company may have to issue additional shares to certain pre-IPO investors if its valuation falls below agreed thresholds.

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