CAN — Quick Start for Regulators and Supervisory Authorities

What CAN is (in regulatory terms)

CAN is a digital coordination layer for allocating access to shared resources using verified contribution, reliability, and care signals. It operates alongside monetary and fiscal systems and does not constitute a substitute for legal tender or a regulated payment instrument.

Minimum oversight requirements

Before authorising a pilot, verify: - lawful basis for data processing - audit capability (technical + procedural) - explainability where automation is used - right to appeal and redress - cybersecurity controls and incident reporting

Sandbox approach

Recommended sequence: 1) regulatory sandbox approval 2) limited scope + population 3) continuous reporting 4) independent evaluation 5) exit/rollback procedures

Interaction with CBDC and digital identity

Where integrated with CBDC platforms: - separate payments from allocation decisions - make conditional rules transparent and contestable - prevent function creep via legal constraints and governance separation