Tether’s USDT Now Accepted for Social Security Payments in the Philippines

Tether’s USDT Now Accepted for Social Security Payments in the Philippines

Tether has introduced a new payment method for Filipino citizens, allowing them to make Social Security System (SSS) contributions using its stablecoin, USDT. The SSS, a state-run social insurance program, provides financial support to employees in both formal and informal sectors during challenging times, administering key programs like social security and employees’ compensation.

Partnership with Uquid to Facilitate USDT Payments

In collaboration with Uquid, a leading Web3 shopping and infrastructure firm, Tether has enabled USDT payments for SSS contributions on the TON blockchain. Uquid, which leverages blockchain technology and decentralized finance, offers a decentralized commerce infrastructure platform with a user base exceeding 260 million across various markets. This partnership supports the broader adoption of cryptocurrencies in everyday transactions, reflecting the increasing demand for stablecoins.

The Role of Stablecoins in Modern Finance

Stablecoins have become integral in driving mainstream acceptance of cryptocurrencies, initially serving as on-ramps for centralized exchanges and now acting as vital liquidity providers in both centralized and decentralized markets. Advocates argue that stablecoins’ near-instantaneous transactions and low costs make them ideal for disrupting the payments sector. Companies like PayPal and Stripe have recognized this potential, with PayPal introducing its PYUSD stablecoin for instant, lower-cost transfers, and Stripe allowing merchants to accept stablecoins for online transactions.

Growing Adoption and Institutional Interest

The adoption of stablecoins extends to cross-border payments at the institutional level, underscoring their potential to revolutionize traditional financial systems. PayPal recently announced a feature enabling users to convert PYUSD stablecoin to USD and send money to recipients in 160 countries globally.

Shifts in Investor Holdings

Despite the increasing use of stablecoins, holdings among institutional and retail investors dropped from 50.2% in December to 42.8% in May. Bitcoin remains the largest single asset held, accounting for 26% of total assets in leading cryptocurrencies as of May 2024. Retail traders, like institutions, prefer BTC over ETH, with institutional positions in BTC and ETH at 39.4% and 20.9% respectively. Following the SEC’s approval of Bitcoin Spot ETFs in January 2024, institutional Bitcoin holdings have increased, while their Ether positions have decreased, suggesting a preference for Bitcoin potentially due to concerns about Ether Spot ETFs not including staking rewards.

Market Timing by Retail Traders

Retail traders have demonstrated their market timing abilities, particularly during the market correction in March-April 2024. This highlights the dynamic nature of cryptocurrency investments and the varying strategies employed by different types of investors.

Conclusion

The acceptance of Tether’s USDT for SSS payments in the Philippines marks a significant step towards the integration of cryptocurrencies in everyday financial transactions, showcasing the potential of stablecoins to enhance financial systems and drive mainstream adoption.

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