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Donald Trump recently brought up a remittance tax that could charge extra fees on international transactions. The goal here is to hinder immigration, but what it might end up pushing cryptocurrency usage instead.
This information comes from Coin Dance, a crypto analytics firm. According to one of its recent charts, the volume of trading within cryptocurrency exchanges has increased significantly since the announcement of this proposal.
Interestingly, the countries where this trading spiked the most are Mexico and areas in South America, reports Forbes. On the Localbitcoins exchange specifically, both countries had set high records in the week ending April 13. Mexico especially, hitting over $500,000 moved in that timeframe.
There are reports that these plans are similar to proposals sent out by Kris Kobach, a former secretary of Kansas state at the White House. Speaking to Breitbart, Kobach described these plans:
“The threat [to illegal immigrants] I propose is one that actually helps [the U.S.] if we follow through on it. That is the threat of ending remittances from the majority of people in the United States from Mexico who are here illegally. That is a threat that we could carry through on that actually helps our economy because the money is not sent home, it stays in circulation in the U.S. economy and helps rev up our economy. It’s actually a good thing if we follow through.”
Ideal for immigration
Cryptocurrencies are faster, cheaper, and harder to trace than digital payments. This makes them ideal for international transfers, as the currency was designed to be global. Ripple’s (XRP) use case is exactly that – streamlined, international payments. Those with the know-how will use digital assets to get around country laws, especially when it comes to immigration.
Hogan Gidley of the White House spoke to the Associated Press regarding immigration:
“It is a top priority for the administration, as has been for two years, to reduce overstay rates for visas and the visa waiver program — and it’s well known that the administration is working to ensure faithful implementation of immigration welfare rules to protect American taxpayers.”