Trump's "big and beautiful bill" could push millions into code

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If passed when Trump’s bill passes, a 5% tax would be introduced on remittances that affect more than 40 million people. Analysts warn that this could encourage the use of alternative options, such as cryptography, and ensure that these funds reach their destinations while avoiding proposed taxes.

“Big and Beautiful Invoice” Remittance Tax could encourage a revival of crypto adoption

Crypto’s remittance use cases did not gain traction, but this could be about to change. The Republican priority bill, dubbed “large and beautiful bill” by President Donald Trump, proposes introducing a 5% tax on remittances sent by non-Americans to their country.

This could affect more than 40 million people in the US, including recipients of various visa programs that wire a portion of their income to support families abroad. The measure has already faced denials from countries like Mexico, which benefit greatly from the flow of funds from the US.

Mexican President Claudia Sinbaum said he has been heavily criticising the bill and its effectiveness.

I consider this measure arbitrary and unfair, as remittance is the result of efforts by those who strengthen not only the Mexican economy but also the United States through honest work.

Bank of Mexico figures show that remittances to Mexico will exceed $64 billion in 2024. If remittance volumes remain close to last year’s levels, potential tax application could generate more than $3 billion.

Nevertheless, even if the bill is applied, analysts believe that these capital flows will find a way to reach their destination and avoid this tax. “Some senders will find alternative ways to send money through unauthorized channels,” said Manuel Orozco, director of migration, remittance and development programs in the inter-US dialogue.

Cryptography may be one of these “fraudulent channels” that can be used to avoid these immigrants being cut down by the US government. Coin Center at Crypto Advocacy Center emphasized that self-hosted wallets are outside the scope of the bill, given that they are not considered transfer mobile providers as they do not have an intermediary to facilitate these tasks.

Read more: BIS research shows retransmission of low-value Bitcoin transfers amidst high traditional costs