The Philippines further increases the circulation of cryptocurrency and will support USDT to pay social security payments

Tether (USDT) has launched a new payment option in the Philippines, allowing citizens to use Tether's stablecoin, USDT, to pay their Social Security System (SSS) contributions.

SSS is a government-run social insurance program that supports employees in both the formal and informal sectors, providing financial aid during difficult times. To facilitate this new payment method, Tether has partnered with Uquid, a Web3 shopping and infrastructure company.

Tether Partners with Web3 Shopping and Infrastructure Company Uquid

Tether has collaborated with Uquid to support crypto payments for the Philippines' SSS. According to Uquid's announcement on X, the transactions will occur on the decentralized TON blockchain.

"Thanks to Tether's support! Using USDT via UQUID on the TON blockchain to pay SSS contributions is a perfect example of how stablecoins like USDT and cryptocurrencies can simplify and improve our daily lives. This aligns with UQUID's vision of making crypto payments more accessible and widespread." —Uquid

Using USDT for SSS payments is expected to simplify the process for millions of people, providing a more stable and efficient transaction method.

Before the launch of crypto payments for the Philippines' SSS, Tether announced on June 25 that it was partnering with a Web3 e-commerce platform. According to the statement, the two companies announced the launch of a USDT store aimed at simplifying on-chain and off-chain shopping experiences.

The store offers various products, including gift cards and mobile top-ups, for less than 1 USDT. Tether's CEO stated that the partnership between the two companies brings the future to the present by providing "unlimited cross-border payment solutions" to global users. Uquid CEO Tran Hung said that the virtual store would significantly reduce barriers to cross-border payments while bridging the gap between cryptocurrencies and everyday transactions.

Cryptocurrency Regulation in the Philippines

According to representatives from the country's blockchain education grassroots initiative, Bitskwela, their group is part of a technical working group established by the Philippine government to develop a regulatory framework for blockchain and cryptocurrency.

House Bill No. 658 (Blockchain Technology Development Act), authored by Congressman Joey Maceda, establishes the basic regulatory framework for the industry. The Department of Information and Communications Technology (DICT) recently launched the government blockchain eGov chain, citing the immutability of blockchain as a key driver for adopting and implementing the program.

A recent report from CoinGecko ranked the Philippines third, behind the United States and the United Kingdom, in interest in meme coins, making it Asia's largest "crypto nation" with a 5.07% share of traffic to GeckoTerminal, DEX Screener, and DEXTools, as well as other similar decentralized finance toolkits and platforms.

Growing Demand for the Stablecoin Market

In recent years, cryptocurrencies have gained more mainstream adoption, with stablecoins leading the way.

Initially used as on-ramp tools for centralized exchanges, stablecoins have evolved into major liquidity providers for both centralized and decentralized markets. Mainstream payment platform PayPal has launched its native stablecoin, PayPal USD, while Ripple has announced plans to launch its own stablecoin in early 2025 to meet growing demand. Stablecoins are also being actively used for cross-border payments at the institutional level.

Recognition of Stablecoins by Multiple Governments

The Philippines' acceptance of cryptocurrencies for government services could set a precedent for other countries.

The integration of USDT for SSS payments indicates increasing trust in digital currencies as a viable alternative to traditional payment methods.

It's not just the Philippines; many countries are adopting stablecoins for trade activities, recognizing the utility of cryptocurrencies in bypassing traditional financial barriers.