RBA consults on settlement infrastructure following Project Acacia

The Reserve Bank of Australia (RBA) is consulting on its Reserve Bank Information and Transfer System's role (RITS) to support settlement in a tokenised ecosystem that was explored through Project Acacia.

The central bank said the project unearthed the potential of a tokenised ecosystem to enhance efficiency, functionality and resilience of the domestic wholesale financial markets, as well as contributing up to $24 billion to the economy once executed.

From the consultation, the RBA is seeking views on how RITS could support the deployment and growth of tokenised asset markets and tokenised private money, while promoting safety, efficiency and financial stability.

It will also address the integration between existing and new forms of money, including the Central Bank Digital Currency (CBDC), as well as help shape the next generation of Australia's settlement services.

The consultation is one of several initiatives identified in Project Acacia that will form the basis of a future program of work aimed at ensuring Australia's money, payments and settlement arrangements remain fit for the future.

"Central bank reserves could support exchanges between different forms of private money, such as traditional and tokenised commercial bank deposits, and stablecoins. This helps different forms of money work seamlessly across the financial system," the RBA said.

"Central bank settlement services will need to evolve to better meet the needs of Australia's financial system into the future."

Additionally, the RBA and Treasury have published a report on retail CBDC, concluding that Australia's retail payment system is serving households and businesses "well", and that there is no clear public interest case for a retail CBDC.

"Together, these publications form part of the RBA's broader work in shaping the future of money, and settlement services and ensuring that Australians remain well served by their retail payments system," the RBA added.

"The RBA continues to work on the wholesale market initiatives identified in Project Acacia. To provide greater visibility into this work, information pertaining to the regulatory, industry and RBA workstreams has now been published online and will be updated periodically."

The consultation welcomes submissions from exchange settlement account holders, financial institutions, technology providers, and other stakeholders interested in the future of RITS and the fast settlement service (FSS). It is open until October 30.