YENTS, a stablecoin developed by Kenya’s Young Entrepreneur’s Network (YEN), has entered into active testing under the local regulatory sandbox. Initially, the entrepreneurs plan to use the Young Entrepreneur’s Network Token (YENTS) within the network to fully pay for sporting events and training. The test in question is aimed at assisting streamline the process of acquiring regulatory approval.
As described by The Africa Report, the young entrepreneurs will launch the token in November 2020. In addition, they are planning to make use of the Stablecoin to accept investments to build a gulf course within 18 months. It is important to understand that the Stablecoin is backed by the Kenyan Shilling on a ratio of 1:1 or the equivalent US dollar amount.
Kamau Nyabwengi, the network’s CEO, informed The Africa Report that there is potential to use YENTS in financial services. For example, people can use it to pull together savings at a small-scale for investment projects through blockchain technology. He further added that YEN intends to launch the token in November, and hopes to use it to accept investments into a planned golf course.
In addition, several blockchain startups have joined Kenya’s regulatory sandbox, an initiative of the Capital Markets Authority. Back in 2019, the regulator said that it would not allow companies dealing with cryptocurrencies to join the sandbox.
However, while the YENTS token has begun testing in Kenya’s regulatory sandbox, Nyabwengi argues that significant regulatory changes still need to be made to allow Kenya’s economy to fully capitalize on the benefits presented by distributed ledger technologies. “Blockchain can help move products from the supplier to the consumer. It allows more efficiency and eliminates middlemen,” he said.
Kamau Nyabwengi strongly believes that blockchain is an ideal way to aggregate small-scale pooled funds for investment, bypassing notoriously exclusionary banking sector, and democratizing access to the financial markets. Similarly, he aims to expand YENTS into other markets within the region and will need to also deal with regulators beyond Kenya.