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diff --git a/sa/sa.tex b/sa/sa.tex
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--- a/sa/sa.tex
+++ b/sa/sa.tex
@@ -840,6 +840,14 @@ and where the limitations on regulation are.
 \paragraph{What would a regulatory regime need to consider (e.g. how would the CBDC
 scheme be structured and who would determine the scheme ‘rulebooks’)?}
 
+We can see two possible regulatory regimes, with either the SARB being
+soly responsible for the issuance of Taler coins denominated in rand, or
+with commercial banks issuing electronic rand.  In the latter case, the
+commercial banks would be subjected to permanent security audits to
+verify that their escrow balance matches the amount of issued electronic
+coins.  Commercial banks may also have to take out insurance to cover
+the potential losses from an attacker compromising their operations.
+
 \paragraph{What potential high-level rules would need to be considered (e.g. participation
 criterion, chargebacks, liability shifts).}