Over the medium term, we are implementing a sequenced approach that will enhance market conduct, increase FX market transparency, and promote a market-determined exchange rate consistent with the characteristics of an organized FX market.
Essentially, these are crypto-tokens that claim to be backed by fiat currency. Prominent examples that already exist are USD Coin and PAX Dollar. While payers and payees trust fiat money because central banks take responsibility for its stability, stablecoins merely borrow trust from the currency they are pegged to.