From time to time an event comes along that seems to present a perfect example of the advantages of blockchain based money. It has now been revealed that Donald Trump is thinking about banning money transfers to Mexico – and for bitcoin that could be huge (pronounced ‘yuge’).
If you haven’t been following the US election, Trump routinely says that Mexico will pay for a massive border wall – but until now he has now said how he will get it to do so. Today, the Washington Post cited a new memo from his campaign that reveals Trump will use anti-terrorism regulation to stop remittances from the US to Mexico, that the Mexican economy depends on, to force its hand.
It is safe to assume that if this actually happens, people that need to send money back to their families will try to find ways around the ban. Considering the vast sums of money involved in US-Mexico cross-border trade this event could be one of the biggest drivers of all time of new forms of remittances services.
Mainly poor immigrants that are employed in agriculture and other seasonal work are not privy to offshore bank accounts in Panama or Switzerland but cryptocurrency wallets are much easier to come by. And not just bitcoin wallets, there are so many new simplified money transfer startups now that work on the bitcoin network or another blockchain behind the scenes without even mentioning it to their clients. Such new tools are beyond the American authorities’ ability to stop and this might be the trigger than leads to their usage exploding.