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Tether (USDT) has launched a new payment option in the Philippines, enabling citizens to pay their Social Security System (SSS) contributions using USDT, Tether’s stablecoin.
The SSS, a state-run social insurance program, provides support to both formal and informal sector employees, offering financial assistance during difficult times. To facilitate this new payment method, Tether has partnered with Uquid, a Web3 shopping and infrastructure company.
Uquid will enable USDT payments for SSS contributions on the TON blockchain. With a large user base across various markets, Uquid aims to promote cryptocurrency adoption in everyday transactions.
This development comes amid growing interest in stablecoins and their potential role in mainstream adoption of cryptocurrencies. Stablecoins have evolved from being primarily used as on-ramp tools for centralized exchanges to becoming liquidity providers in both centralized and decentralized markets.
Industry adoption of stablecoins
Some industry participants argue that stablecoins could disrupt the payments sector due to their transaction speed and low costs. Various companies in the financial industry have been exploring stablecoin implementation.
PayPal introduced its PYUSD stablecoin to enable transfers within its payment infrastructure, while Stripe announced that merchants using its platform can accept certain stablecoin payments for online transactions. There’s also growing interest in stablecoins for cross-border payments at the institutional level.
However, recent data indicates a decline in stablecoin holdings among investors. From December to May, stablecoin holdings decreased for both institutional and retail investors. Bitcoin (BTC) currently represents the largest single asset held by these investors.
Institutional investors appear to show a preference for Bitcoin over Ethereum (ETH), with Bitcoin holdings increasing following the SEC’s approval of Bitcoin Spot ETFs in January 2024. Meanwhile, Ethereum positions have decreased among institutional investors. This trend might be influenced by various factors, including perceptions of investment potential and regulatory developments.
Retail traders, on the other hand, have shown different behavior patterns, particularly during recent market movements. Their actions during the March-April 2024 market correction suggest an ability to adapt to changing market conditions.
