Nicosia: Cyprus is set to participate in the European Central Bank's (ECB) pilot programme for the digital euro, as revealed in an announcement by the ECB on Tuesday. The initiative includes 19 Eurosystem national central banks, positioning Cyprus as a key player in this innovative financial undertaking.
According to Cyprus News Agency, the pilot programme will be conducted at the Bank itself, alongside the national central banks involved, including Cyprus. The primary goal is to test the functionalities of the digital euro. The ECB has chosen 36 payment service providers from across the euro area to participate in this crucial exercise, which aims to evaluate the technical functionality and operational processes involved in handling the digital euro, as well as to enhance the user experience.
The programme seeks to support ongoing preparatory work for the potential issuance of a digital euro, with testing expected to commence in the second half of 2027, lasting for 12 months.
The tests will involve collaboration between ECB staff, participating national central banks, e-commerce merchants, and service providers such as cafeterias and restaurants. Central bank staff will conduct test payments in digital euro through various methods, including person-to-person transactions both online and offline, and person-to-business payments at physical and digital points of sale.