Nicosia, Cyprus. 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, marking Cyprus’ participation in the next stage of Eurosystem preparations.
The two Cyprus-based payment service providers are among 36 selected from across the euro area for the pilot, which is due to begin in the second half of 2027 and last 12 months.
Pilot preparations
The Central Bank of Cyprus said it would work closely with Bank of Cyprus, JCC Payment Systems and the ECB in preparation for the exercise.
During the pilot, selected payment service providers will work with the ECB and national central banks to test a beta version of the digital euro in a controlled environment.
Testing objectives
The exercise will assess the digital euro’s technical functionality, operational arrangements and user experience, while helping to refine its overall design before any issuance decision.
The ECB said the beta version will be functionally and technically close to the digital euro envisaged under proposed legislation, but it will not have legal tender status.
Selection process
The pilot follows a call for expressions of interest launched in March 2026, which drew more than 50 applications from payment service providers across the euro area.
Applicants were assessed against pre-defined eligibility criteria. The ECB said the 36 successful participants represent a range of business models and company sizes to provide a diverse testing environment.
“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.