Yes, it is possible. Here's a screenshot to prove it:-

This miracle is due to the efforts of John Elliot and you can download it from his website here.

So what do you get? You get an implementation of both CP/M 2.2 which can also be converted to run CP/M 3 which is much the better version and is the version found on the older PCW's as well as the CPC6128 and the Sinclair Spectrum +3.

The version I am using above is an implementation of CP/M 3 (or CP/M Plus) called ZPM3 and has some interesting features particularly the command line history (much like DOSKey) which is very useful. CP/M for the PCW16 comes with a few utilities including a disk utility that allows disks to be formatted (you can't use DISCKIT from old PCW disks).