Newsroom
Cyprus will be among the 19 eurozone countries participating in the European Central Bank's first pilot programme for the digital euro, with testing expected to begin in the second half of 2027.
The year-long programme is part of the ECB's preparations for the possible introduction of a digital version of the euro. Officials say the exercise will test the currency's technical performance, operational processes and overall user experience before any decision is made on issuing it.
The pilot will involve the ECB together with the national central banks of all 19 eurozone member states, including the Central Bank of Cyprus.
To support the project, the ECB has selected 36 payment service providers from across the euro area. They include banks as well as non-bank financial firms representing a variety of business models and market sizes.
Interest in the programme was strong, with the Eurosystem receiving more than 50 applications after inviting providers to apply in March this year. The ECB said the final selection was designed to create a representative testing environment across the eurozone.
The trial will use a beta version of the digital euro that closely reflects the proposed system in both technical and functional terms. However, it will not have legal tender status and will be used solely for testing purposes.
Some participating payment providers will allow Eurosystem staff to open test accounts and carry out digital euro transactions. Others will work with selected merchants, enabling them to accept trial payments. A number of providers will perform both functions.
Testing will include person-to-person payments, online and offline transactions, payments at physical shops and purchases through e-commerce platforms, including mobile payment services.
Participants will include staff from the ECB and the participating national central banks, together with selected online retailers and businesses providing everyday services, such as cafés and restaurants.
ECB Executive Board member Piero Cipollone, who chairs the institution's High-Level Task Force on the Digital Euro, said the level of interest shown by payment providers demonstrates strong engagement from the private sector. He said the ECB looks forward to working closely with industry partners to develop a digital euro that is secure, efficient and accessible.
Following the selection process, the participating payment service providers will now begin preparatory work with the ECB and their respective national central banks ahead of the pilot's launch in 2027.
