SYDNEY, Oct 16 Reuters Australia39;s central bank on Monday said tokenised money could help save billions of dollars in costs in domestic financial markets, as it studies whether and how to launch a central bank digital currency.

In a speech on tokenisation, Reserve Bank of Australia RBA Assistant Governor Brad Jones said a key priority for the bank was assessing how different forms of digital money and infrastructure could support the development of tokenised asset markets.

Australia39;s government on Monday separately outlined proposals for regulating crypto and digital assets that will make platforms subject to existing Australian financial services laws and require platform operators to obtain an Australian Financial Services Licence.

This will include minimum standards for holding tokens, standards for custody software and standards when transacting in tokens.

Jones, who heads the RBA39;s financial system division, said tokenisation could deliver hypothetical transaction savings of around A13 billion 8.20 billion a year to issuers in Australia39;s capital markets, in part through providing increased liquidity.

Another A1 billion to A4 billion could be saved in transaction fees via increased trading volumes and the benefits of atomic settlement, particularly on crossborder payments.

Atomic settlement is instantaneous swapping of an asset for a payment.

The RBA has been studying whether to issue a central bank digital currency CBDC of its own and if it would…