SYDNEY (Reuters) - Australia's central bank has decided to prioritise work on a wholesale central bank digital currency (CBDC) as its economic benefits are judged to outweigh those of a retail version, a top policymaker said on Wednesday.

In a conference speech, Reserve Bank of Australia (RBA) Assistant Governor Brad Jones announced the launch of a three-year digital money work plan for the RBA and Treasury called Project Acacia.

The project would include industry and focus on opportunities to lift the efficiency, transparency and resilience of wholesale markets through tokenised money and new settlement infrastructure.

Subsequent phases could well involve cross-border applications with regional central banks, Jones said.

The RBA and Treasury would still reassess the merits of a retail CBDC over time and plan a follow-up paper in 2027. If a retail version were to be adopted, the Australian government would have to make the decision and it would almost certainly require legislative change, he added.

"Our assessment is that the potential benefits of a retail CBDC generally appear modest or uncertain at the present time, relative to the challenges it would introduce," said Jones.

The benefits of a wholesale CBDC include reducing counterparty and operational risks, freeing up collateral, increasing transparency and auditability and reducing costs for institutions and customers.

Around 134 countries representing 98% of the global economy are now exploring digital versions of their currencies, research by the U.S.-based Atlantic Council think-tank showed this week.

(Reporting by Wayne Cole; editing by Sam Holmes)