What is the SSS?
The Social Security System (SSS) is a state-run social insurance program in the Philippines, designed to provide financial support to employees in both formal and informal sectors. The SSS administers two main programs: the social security program and the employees’ compensation program, aiming to offer financial assistance during challenging times.
Tether Partners with Uquid for USDT Payments
Tether has teamed up with Uquid, a leading Web3 shopping and infrastructure firm, to facilitate USDT payments for SSS contributions via the TON blockchain. Uquid’s decentralized commerce infrastructure leverages blockchain technology and decentralized finance to offer crypto payment options. With a user base exceeding 260 million across various markets, Uquid is well-equipped to support the broader adoption of cryptocurrencies in everyday transactions.
The Rise of Stablecoins
Stablecoins have gained significant traction in recent years, reflecting the broader adoption of cryptocurrencies. Initially serving as an on-ramp tool for centralized exchanges, stablecoins now play a crucial role as liquidity providers in both centralized and decentralized markets. Their near-instantaneous transactions and low costs make them ideal for disrupting the payments sector.
Major Developments in Stablecoin Adoption
PayPal
: Introduced its PYUSD stablecoin to facilitate instant and lower-cost transfers within its payment infrastructure.
Stripe
: Announced that merchants using its platform can accept stablecoins for online transactions, starting with USDC on the Solana, Ethereum, and Polygon blockchains.
Cross-Border Payments
: Stablecoins are gaining traction at the institutional level for cross-border payments, showcasing their potential to revolutionize traditional financial systems.
Recently, PayPal announced a feature that allows users to convert PYUSD stablecoin in their linked PayPal accounts to USD and use it as a funding source to send money to recipients in 160 countries globally.
Stablecoin Holdings and Market Trends
Despite the growing adoption, stablecoin holdings among institutional and retail investors decreased from 50.2% in December to 42.8% in May. Bitcoin remains the largest single asset held, accounting for 26% of total assets among leading cryptocurrencies as of May 2024.
Retail traders and institutions both show a preference for Bitcoin over Ethereum, despite renewed optimism for ETH Spot ETFs. Institutional holdings in BTC and ETH are more concentrated, with 39.4% and 20.9% respectively as of May. Since the SEC’s approval of Bitcoin Spot ETFs in January 2024, institutional Bitcoin holdings have consistently increased, while Ether positions have surprisingly decreased. This trend suggests that institutions view Bitcoin as a more attractive option, potentially due to concerns about Ether Spot ETFs not including staking rewards.
Retail traders have demonstrated their ability to time the market effectively, particularly during the March-April 2024 correction.
Conclusion
The introduction of USDT for SSS contributions in the Philippines highlights the growing integration of stablecoins into daily financial transactions. As cryptocurrencies continue to gain mainstream acceptance, innovations like this will play a crucial role in modernizing financial systems and providing more efficient payment solutions.
