- The Philippines runs a contributory social security system (SSS), which provides a crucial safety net for its citizens.
- Filipinos can now pay their SSS contributions using USDT via the Ton blockchain.
- This functionality is available thanks to a partnership between Tether and Web3 firm Uquid.
Cryptocurrency is often criticized as a ‘walled garden’ with limited real-world utility, making it a niche offering. Critics contend that digital assets exist in an isolated ecosystem, disconnected from ordinary people’s everyday financial needs. This perception has significantly hindered the widespread adoption and integration of cryptocurrencies into mainstream financial systems.
However, in a compelling example that challenges this myth, Tether has partnered with ‘Web3 shopping’ firm Uquid to enable Filipinos to make Social Security System (SSS) contributions via the TON blockchain.
Tether’s USDT Making Real World Impact
In a significant advancement for real-world crypto utility, citizens of the Philippines can now make SSS payments using the USDT stablecoin on the TON blockchain. This innovative solution comes as a collaboration between Tether and Uquid, marking a step forward in integrating cryptocurrencies into everyday financial transactions.
Uquid CEO Tran Hung used the announcement to underscore the company’s commitment to social responsibility. Hung emphasized, ‘Uquid stands out by prioritizing user demand over maximum profit,’ while highlighting the cost-effectiveness of using stablecoins on the TON blockchain.
Founded in 2016 in Coventry, U.K., Uquid has established itself as a Web3 infrastructure firm for both digital and physical shopping. The company’s approach connects e-commerce and decentralized finance (DeFi), creating a bridge between online shopping and the crypto world. Additionally, Uquid operates an NFT marketplace, further expanding its footprint in the digital asset space.
Tether’s USDT stablecoin is currently available on 16 different blockchains, with the TON blockchain being the most recent addition as of April 19. Tether will phase out support for Algorand and EOS, having citied a switch of focus to ‘community-driven blockchains.’
The cost of using USDT varies by blockchain depending on network load and the chains’s gas fee structure. On the TON blockchain, the average transaction costs 0.005 TON (approximately $0.04 at the current TON price). In comparison, the average Ethereum transaction costs around $1.70, down from a yearly high of $30.33.
The SSS Safety Net
The SSS in the Philippines is a comprehensive state-run social insurance program designed to protect private sector workers, including those in the informal sector, self-employed individuals, and voluntary members.
This crucial safety net aims to provide financial support during various life events and challenges, offering replacement income in cases of sickness, maternity, unemployment, disability, retirement, and death.
A key aspect of the SSS is its mandatory coverage for all sea-based and land-based Overseas Filipino Workers (OFWs) under the age of 60. This requirement recognizes the significant contribution OFWs make to the Philippine economy and ensures that they have access to social security benefits despite working abroad.
The benefits provided by the SSS are designed to be proportional to the contributions made by each member. This means that the amount of benefits payable in applicable circumstances is directly linked to the amount and number of contributions a member has made over time.
However, to ensure a basic level of support for all members, the SSS has established a minimum monthly payable amount of ₱8,000 (approximately $136).
On the Flipside
- Governments are increasingly looking at stablecoins as vital payment infrastructure.
- Enabling SSS payments via cryptocurrency could potentially improve financial inclusion for unbanked or underbanked Filipinos, especially those working overseas.
- Toncoin recently became the eighth-largest cryptocurrency, overtaking Dogecoin.
Why This Matters
Tether’s partnership with Uquid to enable SSS payments marks a significant step towards integrating cryptocurrencies into everyday financial transactions.
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Sourced from dailycoin.com.
Written by on 2024-07-01 18:00:00.
