The Reserve Bank of Australia (RBA) launched a consultation on the role of the Reserve Bank Information and Transfer System (RITS) in supporting settlement in a tokenized ecosystem, according to a Thursday statement.

The consultation is open until Oct. 30.

The RBA and Australia's Treasury maintain that there is currently no clear public interest case for issuing a retail central bank digital currency in the country, according to a separate report on the same day.

Tokenization has the potential to enhance the efficiency, functionality and resilience of Australia's wholesale financial markets, the central bank said.

It will continue monitoring developments in retail payments, cash accessibility, tokenized money, consumer payment preferences and digital finance both domestically and internationally. Current evidence shows there's no need for retail central bank digital currency to promote innovation or ensure safety in Australia's retail payment system.

The RBA committed to a coordinated work program, along with regulators and industry, to help realize potential benefits from tokenization-based innovation in a manner consistent with financial system stability.