SANDBOX METHOD

About:

• The term ‘Sandbox’ In the financial industry, refers to a mechanism for developing regulation that keeps up with the fast pace of innovation.
  
  
• The term originally referred to the small box filled with sand where children play and experiment in a controlled environment. In the computer science world, a sandbox is a closed testing environment designed for experimenting safely with web or software projects.
  
  
• Now, in the digital economy arena, it means a regulatory sandbox i.e. testing grounds for new business models that are not protected by current regulation, or supervised by regulatory institutions.
  
  
• These testing grounds are especially relevant in the fintech world, where there is a growing need to develop regulatory frameworks for emerging business models.