There has been a lot of talk about Donald Trump’s idea to block all remittance transfers from the US to Mexico shortly. While this makes an excellent case for Bitcoin, the Mexican government has issued a warning and hinted at potential repercussions.
It does not come as a complete surprise to learn the Mexican government has not taken kindly to Donald Trump’s plan to build a wall around the country and halt all remittances from the United States. After all, this would bring a halt to a US$20 billion annual business that holds great value to citizens of both countries.
While it is true, there is always a risk of money laundering being a part of these remittance services, that in itself does not warrant such drastic action. However, Trump feels very comfortable he can build a wall between the US and Mexico – assuming he gets elected – and make the Mexican government pay for it as well.
However,
Mexico’s deputy secretary for finance mentioned how these drastic measures will inadvertently lead to money being smuggled, forcing lots of people into the illegal and underground world. In the end, there will be far less financial information to share between both countries than there is now, which would create an adverse effect altogether.At the same time, these illegal transfers of money have been a thorn in the side for governments all over the world. Mexico and the US have started to plug some of the holes in international banking and financial systems which allow for money laundering. However, shutting down one of the world’s largest remittance corridors is not the right way to go, by any means.
Regardless of the outcome of this debacle, Bitcoin presents a clear way out from all of these struggles. Keeping in mind how cryptocurrency is not part of the traditional financial ecosystem, and there is no control by banks to control the supply or where funds can be sent, it seems a perfect solution to any potential remittance issues in the present and future.
Source; LA Times
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