As reported by Forbes, the administration of Donald Trump is trying to find new ways to make life difficult for illegal immigrants and for people who stay in the US after their visas expire. These attempts, believes Forbes, could push more low-paid immigrants in the US to start using Bitcoin.
Remittance tax inspires Bitcoin adoption
Trump is going for a re-election. Therefore, these solutions will reportedly be the basis of the new election campaign for Trump when in 2020 he will compete with John McAfee and other presidential candidates.
One of these solutions is taxing remittance payments that people use to send money to Mexico and other countries they come from. Should this law be approved and adopted, it may cause illegal immigrants to start using Bitcoin instead of fiat. Apart from being non-taxable, crypto payments are much cheaper and faster than traditional electronic payment systems.
The author of the Forbes article believes that the current use of Bitcoin in the US may be already due to Trump’s intention to introduce the tax – over the last week, trading volumes of Bitcoin in Mexico and a few South American countries, which are the source of immigrants for the US – has been pretty high.
Cited by Forbes, recent data from Coin Dance that tracks data from decentralized exchanges Localbitcoin, Bisq and Paxful, demonstrates that in several regions Bitcoin trading volumes have soared after the first appearance of the news regarding Trump’s intentions to launch a remittance tax.
“Tax remittance is good for the US”
Last week, a former high ranking official from Kansas, Kris Kobach, proposed a similar thing – to stop Mexican immigrants from sending money home. He justified it by saying that this is actually good for the US economy, since the money will stay in the country.
Image from Twitter @realDonaldTrump