Cyprus's Audit Office has criticized a €1.5 million no-bid contract for the Digital Citizen mobile wallet, which was awarded to the Greek Ministry of Digital Governance without an open tender www.visahq.com. Auditors found that development commenced before the contract was officially signed and lacked independent cost evaluations. This procedural breach has led the Cypriot Parliament to investigate the project, casting doubt on the transparency and immediate future of the nation's digital infrastructure initiatives www.audit.gov.cy.

The dispute is significant for regional travel as the app is intended to host EU-level digital travel credentials, potentially replacing physical IDs at airports. By digitizing identification for expatriates and frequent flyers, the platform aims to align Cyprus with broader Schengen-area digital standards. However, the current legal scrutiny may hinder the app's certification process, slowing the adoption of biometric and digital-first border solutions across the island.

Travelers should anticipate a slower timeline for the phase-out of physical documents at Cypriot airports while the investigation continues. Although the Digital Citizen app remains a key part of the government's modernization strategy, passengers must continue to carry valid physical passports or ID cards for the foreseeable future. Stakeholders are advised to monitor the Cypriot Parliament’s findings, as these will determine when digital wallets become legally recognized for airport security.