On May 21, the United States recently proposed a 5% tax on international remittances for non-U.S. residents, set to take effect by the end of May 2025. This policy covers individuals working in the U.S. but not holding resident status, including green card holders and those with various work and student visas. A corresponding tax fee must be paid regardless of the purpose of the remittance, aimed at raising billions of dollars in federal revenue. The tax will be directly deducted at the financial institution level, affecting traditional cross-border payment channels like Western Union and PayPal. Once implemented, this may encourage some users to seek more flexible and cost-effective remittance methods, with digital currencies, especially stablecoin remittance platforms like USDT, likely to benefit. BiyaPay, as a multi-asset trading wallet, supports instant exchange of 30 fiat currencies and 200 digital currencies, meeting diverse cross-border funding needs, and also provides users with convenient access to U.S. and Hong Kong stock and digital currency investments. From a global perspective, this tax has limited impact on Indian remittances due to their relatively low share in GDP, and most Indian immigrants in the U.S. are high-income white-collar professionals with strong financial capacity. In contrast, it will have a greater impact on some Latin American countries that rely on remittances as a major source of foreign exchange, potentially leading to a reduction in total remittances and affecting the local economy. Overall, this move reflects a trend of shifting financial burdens in U.S. immigration policy, which may promote further popularization and application of digital currency remittance channels in the short term. Users can pay attention to the BiyaPay platform to conveniently participate in cross-border fund remittances and investments using USDT at a 1:1 exchange rate with the dollar.

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