⚡If Trump's bill is passed as is, a 5% tax on remittances would be introduced, affecting more than 40 million people. Analysts warn that this could drive the use of alternative options, such as cryptocurrencies, to ensure that these funds reach their destination while avoiding the proposed tax.
⚡The remittance tax from the ‘Great and Beautiful Bill’ could spur a resurgence in the adoption of cryptocurrencies.
⚡Although the use case for cryptocurrencies for remittances has not gained traction, this could be about to change. The Republican priority bill, dubbed the “great and beautiful bill” by President Donald Trump, proposes to introduce a 5% tax on remittances sent by non-U.S. citizens to their countries of origin.
⚡This could affect more than 40 million people in the U.S., including beneficiaries of various visa programs who send part of their income to support their families abroad. The measure has already faced rejection from countries like Mexico, which greatly benefit from the flow of funds from the U.S.
⚡Strongly criticizing the bill and its effects, the President of Mexico, Claudia Sheinbaum, declared:
💬 Remittances are the fruit of the efforts of those who, through their honest work, strengthen not only the Mexican economy but also that of the United States, which is why we consider this measure arbitrary and unfair.
⚡Figures from the Bank of Mexico indicate that in 2024, remittances to Mexico will exceed 64 billion dollars. The possible application of the tax could generate more than 3 billion dollars if remittance volumes remain close to last year's levels.
⚡However, even if the bill is enacted, analysts believe that these capital flows will find a way to reach their destination, evading this tax. "Some senders would find ways to send money differently, through unauthorized channels," said Manuel Orozco, director of the Migration, Remittances, and Development Program at the Inter-American Dialogue.
⚡Cryptocurrencies could be one of these "unauthorized channels" that these migrants might use to avoid being affected by the U.S. government.
