If passed as is, #TRUMP ’s bill would impose a 5% tax on remittances affecting more than 40 million people. Analysts warn that the proposed tax could encourage the use of alternative options, such as crypto, to ensure that these funds reach their destination.

‘Big, Beautiful Bill’ Remittance Tax Could Revitalize Crypto Adoption

While crypto’s use in remittances has not gained traction, that could be about to change. The Republican-led bill, dubbed the “big, beautiful bill” by President Donald Trump, would impose a 5% tax on remittances sent back to their home countries by non-#US citizens.

This would affect more than 40 million people in the US, including recipients of various visa programs that send a portion of their income to support their families abroad. The bill has already been rejected by countries such as Mexico, which benefit greatly from the influx of funds from the US.

Mexican President Claudia Sheinbaum, who has been harshly critical of the bill and its effects, said:

Remittances are the fruit of the efforts of those who, through their honest work, strengthen not only the Mexican economy but also the economy of the United States, so we see this measure as arbitrary and unfair.

According to data from the Mexican Central Bank, remittances to Mexico will exceed $64 billion in 2024. The potential of the tax, if remittance volumes remain close to last year’s levels, could generate more than $3 billion.

Even if the bill is implemented, analysts believe that these capital flows will find a way to reach their destination, avoiding this tax. “Some senders will find ways to send money in different ways, through unauthorized channels,” said Manuel Orozco, director of the Migration, Remittances and Development Program at the Inter-American Dialogue.

Crypto could be one of the “unauthorized channels” that these migrants could use to avoid being cut off by the US government. Coin Center, a crypto advocacy center, emphasized that self-custodial wallets would be excluded from the scope of the bill, as these wallets are not considered remittance providers, as there is no intermediary facilitating these tasks.

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