WASHINGTON—If the Trump administration’s proposed crackdown on remittances becomes law, use of Bitcoin in Mexico could soar, several news sources predict.
In the future, it is feared Trump’s government will make it illegal for remittance firms to serve Mexicans who cannot prove they are legally registered in the U.S.
The CoinTelegraph reported that Jesús Cervantes of the Center for Latin American Monetary Studies, stated that the move “would stimulate an informal economy for remittances.”
Bitcoin could thus emerge as an immediate solution to the crisis. Digital currency use is growing in Mexico, with exchanges thriving and ever-increasing trade being witnessed, The CoinTelegraph reported.
Nov. 8 “was our highest-volume day historically, with about $13.5 million [pesos] in purchases,” said Pablo Gonzalez, CEO of local exchange Bitso, according to The CoinTelegraph.
The news outlet said Gonzalez suspects the rush was due to “panic” as the value of Mexico’s currency dropped by over 12% upon news that Trump had won the presidency.