RBA Seeks Feedback on Tokenized Settlement System

Australia's central bank is taking steps to adapt its payment and settlement system for tokenized assets. The Reserve Bank of Australia (RBA) has opened a consultation period until October 30th on how the Reserve Bank Information and Transfer System (RITS) can support settlement in tokenized wholesale markets.

RITS is the RBA's platform for settling transactions, and tokenization involves representing assets like bonds or deposits as digital tokens. For tokenized cash to settle with central-bank 'finality', it needs to be linked to new tokenized rails, enabling delivery-versus-payment and atomic settlement.

The RBA also released a report with Australia's Treasury stating that there is no strong public benefit case for a retail central bank digital currency. Instead, the RBA will continue to monitor retail payment trends while pushing forward with coordinated work on tokenization.