Tether, the Philippines will be able to pay taxes using USDT on the TON blockchain

Tether recently announced a new payment option for Filipino citizens, allowing them to pay contributions to the Social Security System (SSS) using the company’s stablecoin USDT. The innovation was made possible through a partnership with Uquid, a well-known Web3 infrastructure company.

Philippine Social Security System

SSS is a social insurance system run by the government. It is a scheme that provides financial assistance to workers in the formal and informal sectors. As a mandatory program, the SSS aims to provide financial assistance during difficult times by administering two main programs: the Social Security Program and the Employees’ Compensation Program.

Tether and Uquid Partnership

Tether has partnered with Uquid to facilitate USDT payments for SSS contributions on the TON blockchain. Uquid is known for its decentralized trading infrastructure platform that uses blockchain technology and decentralized finance (DeFi) to provide cryptocurrency payment options. With a user base of over 260 million people across various markets, Uquid is well positioned to support the adoption of cryptocurrencies in everyday transactions.

The Importance of Stablecoins

Stablecoins such as USDT have seen an increase in demand in recent years, reflecting the growing adoption of cryptocurrencies. Stablecoins are cryptocurrencies designed to maintain a stable value against fiat currencies such as the US Dollar. Their stability and low transaction costs make them ideal for everyday transactions.

While stablecoins initially served as an entry point into centralized exchanges, they have now become important liquidity providers in both centralized and decentralized markets. Proponents of stablecoins argue that their near-instant transactions and low costs make them ideal for revolutionizing the payments industry.

Examples of stablecoin adoption

PayPal introduced stablecoin PYUSD last year to facilitate instant, low-cost transfers within its payments infrastructure. Similarly, Stripe announced on April 25 that it would allow retailers to accept stablecoins for online transactions, starting with USDC on the Solana, Ethereum and Polygon blockchains.

How stablecoins will impact cross-border payments

Stablecoins are also being used for cross-border payments at an institutional level, highlighting their potential to revolutionize traditional financial systems. Recently, PayPal announced a feature that allows users to convert PYUSD to USD and use that as a funding source to send money to recipients in 160 countries.

Stablecoin holdings trends

According to reports, stablecoin holdings by institutional and retail investors dropped from 50.2% in December to 42.8% in May. However, Bitcoin remains the largest asset, accounting for 26% of all cryptocurrency holdings as of May 2024.

Retail investors, along with institutions, continue to favor BTC over ETH despite renewed optimism for an ETH spot ETF. Institutional holdings of BTC and ETH are higher than retail holdings, at 39.4% and 20.9%, respectively, in May.

Since the SEC approved a Bitcoin spot ETF in January 2024, institutional holdings of Bitcoin have steadily increased while holdings of Ether have surprisingly declined, suggesting that institutions are viewing Bitcoin as a more attractive alternative due to concerns that the Ether spot ETF does not include a staking premium.

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