Cyprus is among the eurozone countries where the digital euro pilot program will be conducted, according to an announcement by the European Central Bank published on Tuesday.

According to the ECB, the pilot program will take place at the ECB itself and at 19 national central banks of the Eurosystem, including Cyprus, with the aim of testing the functionality of the digital euro.

The ECB announced that it has selected 36 payment service providers from across the euro area to participate in the pilot program. The exercise is considered critical for testing the technical functionality and operational procedures of the digital euro, as well as for improving the user experience.

The pilot program aims to support ongoing preparatory work for the potential issuance of a digital euro and is expected to begin in the second half of 2027, for a period of 12 months.

More than 50 applications

According to the announcement, following a call for expressions of interest in March 2026, the Eurosystem received more than 50 applications from payment service providers, reflecting strong market interest and participation.

Applicants were evaluated based on predefined eligibility criteria. The selected participants, which include banks and non-bank service providers, cover a wide range of business models and sizes and offer broad geographic coverage.

The ECB notes that this composition ensures a diverse and representative testing and learning environment for the digital euro.

Piero Cipollone, a member of the ECB’s Executive Board who chairs the High-Level Group on the digital euro, in remarks included in the press release, emphasized that the market’s strong interest in the pilot program demonstrates the private sector’s readiness to actively engage and move forward quickly with the the digital euro project in order to strengthen the European payments landscape.

Mr. Cipollone added that the ECB looks forward to deeper cooperation with European payment service providers to develop a secure, efficient, and inclusive digital euro.

Beta version

According to the ECB, the pilot program will use a beta version of the digital euro. This version will be functionally and technically similar to the digital euro, as envisaged in the draft legislation, but will not have the status of legal tender.

Some of the selected providers, referred to as payment service providers, will provide Eurosystem staff with access to digital euro test services, such as creating a test account and making payments.

Other providers, referred to as payment service acceptance providers, will serve selected merchants and allow them to receive test payments in digital euros. Some providers will have a dual role, acting as both acquirers and distributors.

How the tests will be conducted

The pilot program will be conducted at the ECB and at national central banks in Belgium, Germany, Estonia, Ireland, Greece, Spain, France, Croatia, Italy, Cyprus, Latvia, Lithuania, Luxembourg, the Netherlands, Austria, Portugal, Slovenia, Slovakia, and Finland.

The ECB notes that the selected payment service providers may provide pilot services in countries other than the one in which they are established.

The pilot program will involve staff from the ECB and the participating national central banks, as well as e-commerce merchants and merchants offering everyday services at their premises, such as cafes and restaurants.

Staff from the participating central banks will be able to make test payments using the digital euro on a person-to-person basis, both online and offline, as well as from person to business, at physical points of sale and via e-commerce, including mobile payments.

According to the ECB, the pilot program will help improve the design of the digital euro and the user experience. As a next step, the selected payment service providers will work with their respective national central banks and the ECB to make the necessary preparations.