The Young Entrepreneurs Network Africa, which is located in Nairobi, has announced the development of a Pan-African stablecoin. A new way for Kenya to confirm its openness to cryptocurrencies?
A stablecoin for Kenya and Africa as a whole
As the project’s website explains , the stablecoin will be “ backed at a 1: 1 ratio by the Kenya shilling or the equivalent of a dollar” . The tokens will initially be created on the ERC-20 (Ethereum) standard, with a hard cap of $ 1 billion.
Initially, the YENTS stablecoin will be used for investment projects – primarily a golf course which will be built in Kenya in the coming months. It will also be used to pay participation fees in sporting events.
The stablecoin, however, is intended to be more than a token linked to the sporting events that take place in Kenya. The project site explains:
„The main value of the token will be savings, credit s and investment – but it will also be used as a medium of exchange for digital payments. “
Regulators, an obstacle to overcome?
According to the CEO of YENTS, Kamau Nyabwengi, it will firstly be a question of complying with the requirements of regulators in Kenya, before offering the stablecoin to other African countries. Kenya has distinguished itself in recent years by being particularly open to blockchain and cryptocurrencies.
A CoinMetrics report even said earlier this month that Kenya was the fifth largest country in the world in terms of cryptocurrency adoption by locals. This can also be seen at the government level: the State has voluntarily left the field open to companies as regards regulation, in order to promote the sector.
Moreover, Kenyans are now familiar with local currencies. A cryptocurrency, the Sarafu, is already in use in Nairobi , to help people affected by the coronavirus crisis. It remains to be seen whether a more global stablecoin will be able to take root in Kenya and other African countries.