Tether is the world’s leading and most reputable stablecoin. A stablecoin means it is equal to $1. Taproot enables smart contracts in bitcoin and enhances privacy.
The integration of Tether (USDT) on Bitcoin’s Lightning Network, combined with Taproot, offers new opportunities for Philippine cooperatives using CoopPay (a custodial Lightning wallet by One Coop Tech).
Today, CoopPay allows peso transfers between members at zero cost. Adding USDT as an option would let cooperatives transact in both pesos and dollars, enhancing flexibility.
Below are practical uses for HMOs, credit unions, and insurance co-ops:
1. Cooperative HMOs (Health Maintenance Organizations)
- Dollar-Denominated Premiums for OFWs:
- Overseas Filipino Workers (OFWs) in Qatar and Dubai can pay monthly premiums in USDT (ex. $20/month) to Cooperative Health Management Federation (CHMF), avoiding forex fees.
- CoopPay’s custodial design simplifies compliance with local regulations.
- Cross-Border Specialist Payments:
- CHMF pays a USDT invoice to a Qatar cancer specialist via Lightning, bypassing slow SWIFT transfers.
- An OFW in Qatar needs surgery. The HMO sends $3,000 USDT via CoopPay to the UAE hospital in seconds.
- Emergency Funds for Rural Clinics:
- A coop clinic in Leyte receives ₱50,000 USDT instantly from CHMF to restock medical supplies after a typhoon.
2. Credit Cooperatives (Back-to-Back Loans)
- Dollar Loans Secured by Peso Collateral:
- A member’s ₱20,000 share capital in the cooperative locks a $400 USDT loan. Taproot’s smart contracts automate collateral management, reducing paperwork.
- A member in Cebu borrows $1,000 USDT against their ₱60,000 share capital. Repayments in pesos or USDT are automated via Taproot.
- OFW Loan Repayments in USDT:
- An OFW in Japan repays a peso loan using USDT (ex. ₱10,000/month) at zero fees via CoopPay, avoiding remittance costs.
3. Insurance Cooperatives (Parametric Insurance)
- Automated Typhoon Payouts in USDT:
- If PAGASA confirms a typhoon hits Catanduanes with a specific amount of rainfall, farmers receive $200 USDT per hectare automatically via Lightning from 1 Cooperative Life Insurance System of the Philippines Life and General Insurance (1CISP).
- CoopPay’s custodial system ensures quick fund distribution.
- Dollar Hedge for Fisherfolk:
- Fishermen in General Santos buy parametric drought insurance in USDT to protect against peso volatility.
- Rice farmers in Isabela receive $150 USDT per hectare automatically when drought satellite data triggers a payout.
JUST IN: World's largest stablecoin Tether is now minting its stablecoin on the Bitcoin Lightning Network ⚡️
— Bitcoin Magazine (@BitcoinMagazine) January 30, 2025
pic.twitter.com/BqlCuiPlvQ
Role of Taproot
- Privacy for Sensitive Transactions:
- HMO payments for sensitive treatments (ex. HIV medication) are obscured on-chain, while remaining auditable.
- Cost Savings:
- Batches 1,000+ HMO premium collections into one transaction, reducing fees by 90%.
Why Add USDT to CoopPay?
- Dollar Stability: Members can save or transact in USDT to hedge against peso volatility.
- Global Reach: OFWs and international partners can send/receive dollars without traditional banks.
- Zero Fees: Like peso transfers, USDT transactions between CoopPay wallets cost nothing.
Steps to Start
- Upgrade CoopPay: Add USDT support while retaining zero-fee peso transfers.
- Member Education: Train staff on USDT benefits (ex. forex savings for OFWs).
- Regulatory Compliance: Work with BSP to ensure smooth USDT-peso conversions.
Adding USDT to CoopPay lets Philippine cooperatives serve members in both pesos and dollars, with Lightning’s speed and Taproot’s efficiency.
For HMOs, insurers, and credit unions, this means cheaper cross-border care, disaster-resilient loans, and automated insurance—all with a custodial wallet tailored for local needs.