Prof. Dr. Joachim Wuermeling used the “FDF2025 Masterclass: Tech, Innovation and the Future of Wholesale CBDC” to argue that the most transformative impact of a digital euro may come in wholesale and B2B markets. While public debate focuses on retail CBDC, he highlighted the potential of tokenized central bank money and smart contracts for industry, fintech and the wider EU single market.
Wuermeling began by distinguishing real digital money from traditional online banking. In his description, digital money exists as a data package that travels directly over the internet, rather than as instructions sent into legacy account and clearing systems. A second defining feature is programmability, where payments are triggered automatically once pre agreed conditions are met.
From smart contracts to industrial automation
Tying payments directly to contract fulfilment, he said, brings a new level of security for both sides of a transaction. Sellers can be sure they are paid at the moment of delivery, while buyers only release funds when goods or services are confirmed as received. This removes manual steps and reduces disputes around non payment or non delivery.
Wuermeling illustrated these ideas with concrete use cases. Airline compensation for delayed flights could be paid automatically once delay data is verified on chain, without claims forms or manual processing. In e-commerce, a book ordered online could be charged only when geolocation confirms it has arrived at the customer home, with refunds initiated automatically when it is returned.
He also pointed to machine to machine payments, where metered usage of equipment can be billed and settled continuously without human intervention. Similar principles could streamline public sector payments, where states both spend and collect large sums and face heavy administrative overhead. The result, he suggested, is a “huge world of use cases” whose full scope is not yet visible.
Wuermeling described this space as a “blue ocean” for now. No provider currently offers a complete package that combines wallets, tokenisation of services, smart contract execution and trusted data oracles into one solution for SMEs or industrial users. This gap creates opportunities for both fintechs and established payment companies willing to move early.
On the policy side, he noted a growing shift in focus from purely retail CBDC discussions to wholesale digital euro and B2B applications. According to Wuermeling, the European Central Bank is preparing short term solutions for wholesale transactions and has launched innovation partnerships for B2B payments. ESMT, where he is active, has been selected as one of the ECB partners and is seeking industry, banking and fintech participants for several proof of concept projects.
Asked about competition with tokenised deposits, commercial bank money tokens and stablecoins, Wuermeling said it is an “open race.” Technically, he argued, these forms of private digital money can support similar B2B use cases as CBDC. The outcome will likely depend on functionality, user benefits and transaction sizes, with CBDC potentially better suited to very large wholesale flows.
He acknowledged banks’ concerns about disruption and financial stability, including questions about how digital euro holdings might affect bank funding and lending. Wuermeling said central banks are acutely aware of this dilemma and are designing the system so that intermediaries retain a major role, including in wallet provision and holding limits. At the same time, he observed that many banks digital units are already looking beyond defensive lobbying and exploring new business models around digital euro infrastructure.
In the international context, Wuermeling contrasted Europe public money approach with the strong push in the United States for private cryptocurrencies and stablecoins. He raised the possibility that a lack of digital dollar might eventually weaken the role of US public money in tokenised wholesale markets. If euro area markets can settle digital assets directly in central bank money on distributed ledgers while the dollar cannot, he suggested, this could become a competitive advantage for the euro.