This will be a scheme in which a fund of money is accumulated in advance of the scheme needing to make any payouts to depositors. The fund will be accumulated by regular contributions from the banks that are members of the scheme.
Currency Boards are becoming acceptable, even fashionable;  ·  the long-term goal of BH policy is to take the economy closer to Europe. The KM is already tied to the Euro. It would therefore seem sensible to maintain this link.