Tether has introduced a new payment option for the Philippines people, allowing them to pay their social security system (SSS) contributions using its stablecoin, USDT.
The SSS is a state-run social insurance program that provides support to employees in both the formal and informal sectors.
As a mandated program, the SSS aims to offer financial assistance during challenging times and currently administers two key programs, including the social security program and the employees’ compensation program.
Tether Partners With Uquid to Enable USDT Payments in Philippines
Tether has partnered with Uquid, a prominent Web3 shopping and infrastructure firm, to facilitate USDT payments for SSS contributions on the TON blockchain.
Uquid, known for its decentralized commerce infrastructure platform, utilizes blockchain technology and decentralized finance to offer crypto payment options.
With a user base of over 260 million across various markets, Uquid is well-positioned to support the adoption of cryptocurrencies in daily transactions.
It is worth noting that stablecoins have seen increased demand in recent years, which reflects the broader adoption of cryptocurrencies.
Stablecoins, in particular, have played a crucial role in driving mainstream acceptance.
Initially serving as an on-ramp tool for centralized exchanges, stablecoins have now become vital liquidity providers in both centralized and decentralized markets.
Advocates of stablecoins argue that their near-instantaneous transactions and low costs make them ideal for disrupting the payments sector.
In an effort to leverage stablecoins, PayPal introduced its PYUSD stablecoin last year to facilitate instant and lower-cost transfers within its payment infrastructure.
Similarly, Stripe announced on April 25 that it would allow merchants using its platform to accept stablecoins for online transactions.
The company is starting with USDC stablecoins on the Solana, Ethereum, and Polygon blockchains.
Additionally, stablecoins are gaining traction for cross-border payments at the institutional level, highlighting their potential to revolutionize traditional financial systems.
Just recently, PayPal announced a feature that allows users to convert PYUSD stablecoin in their linked PayPal to USD and use it as a funding source to send money to recipients in 160 countries globally.
Stablecoin Holdings Drop Among Investors
As reported, stablecoin holdings among institutional and retail investors decreased from 50.2% in December to 42.8% in May.
On the other hand, Bitcoin continues to be the largest single asset held, accounting for 26% of their total assets in the leading cryptocurrency as of May 2024.
Retail traders, similar to institutions, continue to show a preference for BTC over ETH, despite the renewed optimism for ETH Spot ETFs.
However, institutional positions in BTC and ETH are more concentrated compared to those of retail traders, with holdings of 39.4% and 20.9% respectively as of May.
Following the SEC’s approval of Bitcoin Spot ETFs in January 2024, institutional Bitcoin holdings have consistently increased, while their Ether positions have seen a surprising decrease.
This suggests that institutions view Bitcoin as the more attractive option, potentially due to concerns about Ether Spot ETFs not including staking rewards.
In contrast, retail traders demonstrated their ability to time the market during the March-April 2024 correction.
Source: CryptoNews
