Letscoin: Kenya Gets First Digital Complementary Currency That'll Ease Transactions

• American-based financial institution Banyan Investment Banking & Hedge Fund set its base in Nairobi as the region's hub
• The lender launched a digital complementary currency dubbed Letscoin to empower Kenyan communities to engage in digital economy
• The bank also announced financial support to the Rubi Foundation aimed at agricultural and social support

Banyan Investment Banking & Hedge Fund, a US-based digital bank, has announced the launch of Letscoin, a digital complementary currency, in Kenya.

How Letscoin will operate in Kenya

Letscoin was designed to empower local communities by enabling merchants, entrepreneurs, and other users to participate in the digital economy.

The digital currency will be banked at Germany’s Deutsche Bank, and the local custodian is ABC Bank.

According to the lender, Letscoin is equivalent to 1 USD, and this will help in dealing with the problem of the Kenya devaluation.

The international lender noted that its expansion to Nairobi, Kenya, is focused on transformative financial technology.

The bank opened a new office in the country's capital that will serve as the fintech’s regional headquarters. This move addresses the growing demand for digital financial services and digital currencies in Kenya and the wider region.

According to Thana Balana from Banyan Investment, Nairobi now joins Cape Town as the other region where fintech has set up operations on the continent.

Buying carbon credits in Kenya

Balan revealed that the firm is eyeing the monetisation of Kenya’s and the wider African carbon credit assets.

“We will introduce our AI technology to review the deposits of Kenya’s carbon credits. We believe that this will transform the economic opportunities for farmers and other stakeholders in the larger economy.”

The project will also see Quantum Metal Bullion Pty Ltd pilot the project to develop a carbon credit initiative program.

The company's innovative AI-enabled drone will measure carbon credit deposits in real time.

Banyan Investment Bank further announced a $100 million (KSh 13.2 billion) funding agreement with Quantum Metal Group to support their African gold trading activities.

Banyan will also serve as a custodian bank, holding 2.5 tonnes of gold on behalf of Quantum Metal Bullion Pty Ltd, the beneficial owner.

Support for government affordable housing

Additionally, the digital bank announced that it will commit €1 billion (KSh 142.9 billion) to the Rubi Foundation Africa.

In Kenya, Rubi Foundation Africa will primarily focus on counties in the Arid and Semi-Arid Areas (ASAL), such as Pokot, Narok, Turkana, Baringo, Marsabit, Kajiado, Wajir, and Makueni.

“These funds will go towards the agriculture and housing sectors in 22 African countries where we believe there is great potential for job creation,” said Rubi Foundation Africa President and Founder Rubi Moss William.

These initiatives will include providing affordable housing, water resources, and agricultural support and inputs to sustain livelihoods.

“The Foundation is already working with the government to launch this program and its related projects. Our goal is to settle over 2 million people in the ASAL regions. Additionally, we are focusing on irrigation and school feeding programs,” added William.

Banyan Group of Companies Chairman Jean Baptiste Bilala added that fintech's investment strategy is designed to foster economic growth within local communities.

Bilala noted that this can be achieved by promoting conservation efforts and catalysing job creation, primarily within the tourism and hospitality industries.

These industries are essential for showcasing Africa’s natural beauty and promoting environmental stewardship.

Proofreading by Asher Omondi, current affairs journalist and copy editor at TUKO.co.ke.

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Letscoin is a digital complementary currency aimed at empowering Kenyans to engage in digital economy.

Letscoin: Kenya Gets First Digital Complementary Currency That'll Ease

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