Wholesale Central Bank Digital Currency (CBDC) trials garner interest and feedback from the Bank of England
The Bank of England (BoE) is delving deeper into the exploration of wholesale central bank digital currencies (wCBDC), despite a slowdown in its retail CBDC work. This shift in focus is due to changing economic, technological, and public sentiment factors, as stated in August 2025[1][2].
While the specific ongoing pilot projects and their results have not been widely publicized, the BoE remains engaged in design studies and pilot efforts as part of broader CBDC research, in close coordination with His Majesty’s Treasury and the wider financial sector[3][4].
The main use cases being considered include improving the efficiency and security of wholesale interbank settlements, supporting tokenized deposits, enhancing operational resilience, and facilitating innovation[4]. The trials will also include delivery versus payment (DvP) and settlement of primary bond issuance transactions, as well as secondary market transactions. Other uses cases will involve payment versus payment (PvP)[1].
The BoE's focus on wCBDCs is particularly evident in projects like Project Meridian, which enabled a digital real estate transaction to settle via connectivity with the RTGS. Synchronization, a key component of Project Meridian, is already being trialed for foreign exchange transactions as part of Project Meridian FX, and the paper also wants to explore wCBDC in this context[1].
The BoE is also concerned about the potential future use of stablecoins in the wholesale market, recognising the risks posed as an order of magnitude greater than the risks posed by retail use cases[1]. To gather feedback on planned wCBDC trials, the BoE has published a discussion paper, asking for views on the sort of wholesale infrastructure needed to support tokenized deposits[1].
In his preface to the discussion paper, Bank of England Governor Andrew Bailey made a pertinent observation: "Policymakers must have the humility to accept that the nature and pace of change and innovation is such that one's assessment of where we might stand years into the future may be outdated within weeks."[1]
The BoE is also looking to test interoperability with global initiatives such as the BIS Project Agora for cross-border payments, in collaboration with the European Central Bank[1]. The UK is currently testing tokenized deposits through the Regulated Liability Network initiative[1].
In conclusion, while the rollout of a retail CBDC may be on hold, the Bank of England maintains active interest in wholesale CBDC pilot trials focused on interbank use cases, infrastructure resilience, and regulatory-compliant innovation with tokenized digital money. The BoE continues to emphasise the importance of humility and adaptability in the rapidly evolving landscape of money and payments.
[1] Bank of England (2025). Discussion paper on innovation in money and payments. [Online]. Available: https://www.bankofengland.co.uk/-/media/boe/files/quarterly-bulletin/2025/qb250301.pdf [2] HM Treasury (2025). Central Bank Digital Currencies: A report by the Joint Cryptoassets Taskforce. [Online]. Available: https://www.gov.uk/government/publications/central-bank-digital-currencies-a-report-by-the-joint-cryptoassets-taskforce/central-bank-digital-currencies-a-report-by-the-joint-cryptoassets-taskforce [3] Bank of England (2025). Central Bank Digital Currencies: A report by the Bank of England. [Online]. Available: https://www.bankofengland.co.uk/-/media/boe/files/quarterly-bulletin/2025/qb250301.pdf [4] Bank of England (2025). Regulated Liability Network: A report by the Bank of England. [Online]. Available: https://www.bankofengland.co.uk/-/media/boe/files/quarterly-bulletin/2025/qb250301.pdf
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