Wholesale CBDC Pilot

Definition ∞ A wholesale CBDC pilot is an experimental program conducted by a central bank to test the use of a Central Bank Digital Currency exclusively among financial institutions. This differs from a retail CBDC, which would be for public use. The pilot aims to assess the technical feasibility, operational efficiency, and potential benefits of a digital central bank liability for interbank settlements and wholesale transactions. It explores new ways to settle large-value payments.
Context ∞ The discussion around wholesale CBDC pilots frequently centers on their potential to modernize financial market infrastructure and improve the efficiency of large-value payments. A key debate involves identifying the specific use cases and technological designs that offer the greatest benefits without disrupting financial stability. Critical future developments will focus on cross-border interoperability and the integration of these digital currencies with existing payment systems. These pilots represent a significant step in the evolution of central bank money.