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A senior Trump administration official told reporters yesterday that a plan to stop remittances to Mexico and other Central American countries is on the table. The purported reason for the plan would be to stop illegal immigrants.
According to the World Bank, some $33.7B of remittances was sent to Mexico in 2018 alone. Guatemala, El Salvador, and Honduras also have remittances in the tens of billions.
The threat is intended to pressure Mexico to curb illegal immigration and lower demand for migrants seeking asylum. It is still unclear whether the ban on remittances — if it goes into effect — would target just undocumented peoples or all nationals from these countries living in the U.S.
The fact that the White House is actively considering outright banning the transfer of money on no criminal basis underscores how vulnerable our financial system really is.
However, although the United States may stop cross-border payment channels arbitrarily and at will, it can’t do that with Bitcoin (BTC). In fact, even if remittances were banned, the White House would have no means of banning Bitcoin remittances to Mexican and Central American families — yet another reason why Bitcoin has all the fundamentals of a proper, global currency. It cannot be censored by states.
[bctt tweet=”The White House is actively considering banning remittances to Mexico. The fact that governments can arbitrarily restrict the movement of money without criminal charges underscores the need for Bitcoin. ” username=”beincrypto”]
Bitcoin provides the world with a workaround to potential bans on remittances or other transfers of money.
It’s especially crucial to consider that the money for these remittances has not been flagged for criminal intent. Instead, it is banning the sending of funds to families overseas. The government may unfairly be able to target people’s bank accounts, but they cannot ban Bitcoin, by its very design.
The choice now is between USD and Bitcoin. If remittances do end up getting banned, it should be painfully obvious which option Mexican nationals in the U.S. will choose.
Is the choice between Bitcoin and USD? Do you think the White House will ban remittances? Let us know your thoughts below.
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