The Central Bank of Cyprus (CBC) hosted a special session on Wednesday with various local business associations, according to an official announcement.
The session focused on the digital euro’s potential to reshape payment processing, fees, and liquidity for Cypriot businesses.
Stelios Georgakis, Acting Senior Director of the Banking Operations Division of the CBC, outlined the Eurosystem’s groundwork for a possible digital euro, detailing both planning principles and ongoing legislative negotiations.
In addition, he acknowledged the key role European Business Associations are playing in guiding this work.
During his presentation, Georgakis addressed questions from attendees, clarifying aspects such as digital euro balance maintenance, payment acceptance across and beyond euro area countries, and fees and charges for businesses.
“Over the next five years more innovation is expected, which will transform the way we make and receive payments; in this regard, businesses that prepare in good time will be at the forefront in the future payment landscape”, he said.
The session covered specific advantages for businesses, including “an additional option for accepting payments, for businesses that already accept comparable digital payment means of payment,” as well as a “stronger bargain position with providers of payment solutions, such that lower fees are agreed than the current ones”.
Georgakis also pointed to the “completion of online purchases at checkout, due to the multiple technologies to be used,” saying that “this will enhance the customer experience and widen the customer base of businesses”.
Further benefits, he noted, include “improved liquidity, as businesses will be able to receive payments in digital euros immediately without additional costs, while being protected from overcharges through regulatory caps”.
He added that businesses will gain “enhanced resilience, reducing Cypriot businesses’ dependence on non-European payment providers”.
