ECB selects payment providers for digital euro pilot

The European Central Bank has announced the selection of 36 payment service providers from across the euro area to participate in a pilot program for the digital euro. In Cyprus, the Bank of Cyprus and JCC Payment Systems were selected for the project. The pilot, which follows a call for expressions of interest launched in March 2026, received over 50 applications. Participants will collaborate with the ECB and 19 national central banks within the Eurosystem to test a beta version of the digital currency in a controlled environment. The exercise aims to evaluate technical functionality, operational processes, and user experience to inform design refinements. The pilot is scheduled to begin in the second half of 2027 and will last for 12 months. While the beta version will mirror the features of a potential digital euro, it will not possess legal tender status during the testing phase. The Central Bank of Cyprus has expressed its support for the participation of the two local providers.