Trump’s Remittance Tax Bill Could Paving the Way for a New Wave of Cryptocurrency Adoption
A new policy proposal from former US President Donald Trump is causing a stir in the international financial community. Dubbed the “Big, Beautiful Bill,” the bill proposes a 5% tax on all remittances sent abroad by non-US citizens. If passed, the policy could directly impact more than 40 million people in the US and indirectly open up a new boom for cryptocurrencies in the cross-border remittance sector.
Threats to Remittance Flows and Global Responses
According to the Central Bank of Mexico, in 2024, the country received more than $64 billion in remittances — mostly from citizens living and working in the US. With the proposed 5% tax, the US government could collect more than $3 billion per year if remittance levels remain stable. However, this has met with strong opposition from governments in countries with large remittances, especially Mexico.
Mexico’s new president, Claudia Sheinbaum, has harshly criticized the bill:
“Remittances are the result of honest labor, which is contributing to the development of not only the Mexican economy but also the United States economy. Taxing them is arbitrary and unjust.”
Cryptocurrency as an alternative
In this context, analysts say that cryptocurrencies, which have been heavily promoted as an alternative to traditional remittance systems but have not yet become popular, could see a renaissance. Manuel Orozco, director of the Migration and Remittances Program at the Inter-American Dialogue, said:
“As official costs increase, senders will look to transfer money through other channels – which may include informal channels such as cryptocurrencies.”
Coin Center, a crypto advocacy group, said that self-custody wallets would not be regulated by the bill because they do not require a middleman. That means users can send and receive money directly in Bitcoin, USDT, or other cryptocurrencies without being subject to a 5% tax.
Reshaping the Future of Remittances
A recent study from the Bank for International Settlements (BIS) also found that low-value Bitcoin transactions are changing the global remittance landscape, especially given the high cost of traditional remittances. As users look for ways to save money and avoid regulatory scrutiny, cryptocurrencies appear to be the most viable route.
If Trump’s “Big, Beautiful Bill” becomes a reality, the unintended consequence could be a rapid acceleration of cryptocurrency adoption—a scenario that both the tech industry and regulators are closely watching.