Trump proposes funding wall by cutting off remittances good for Bitcoin?
Donald Trump would force Mexico to pay for a border wall by threatening to cut off billions of dollars in remittances sent by immigrants living in the U.S., according to a memo released by his campaign Tuesday.
The memo outlines how Trump would try to compel Mexico to pay for a 1,000-mile wall if he becomes president.
The Mexican central bank reported that money sent home by Mexicans overseas hit nearly $24.8 billion last year, overtaking oil revenues for the first time as a source of foreign income. Cutting off those transfers would therefore represent a significant blow to the Mexican economy. Trump’s campaign says that money “provides substantial leverage for the United States to obtain from Mexico the funds necessary to pay for a border wall.”
“We have the moral high ground here, and all the leverage,” the memo reads. “It is time we use it in order to Make America Great Again.”
Remittance was a $582 billion market in 2014 according to the World Bank. Most of all it is dominated by transfers from developed countries to developing ones. In 2014, China received $64 billion through remittance and India $71 billion. Philippines received $25 billion, Mexico $22 billion, Nigeria $21 billion, Egypt $17 billion and Vietnam $11 billion in 2013.
So far most transactions are made through brick and mortar networks; in 2014 only 5% were digital transactions. These networks like Western Union or MoneyGram charge high fees to finance their deep local presence worldwide. A typical money transfer costs up to 10% fees.
I think just as important is the viability of an illegal immigrant in the US obtaining BTC in the first place don’t most avenues to purchase bitcoin in the US (coinbase, circle, etc.) require some form of ID and a bank account (if you’re trying to get over a certain threshold)? Something that illegal immigrants most likely won’t have or just be trying to avoid flat out. A few ways you could skirt this issue is 1) use a product like Abra or Mycelium wallet: no ID, no interaction with a bank, only dealing with human tellers who will accept cash and load up your wallet…but then you need to make sure your family member on the other end has a means convert it into the local currency 2) use LocalBitcoin, illegal immigrant only needs to domestically wire or purchase bitcoin in person, but then the same question of converting into mexican peso arises.
Below are companies where Bitcoin can be cashed-out in a local currency for remittances:
Aircoinz – (Argentina)
Beam Remit – (Ghana)
BitPesa – (Kenya)
Coin Batch – (Mexico)
Coins.ph – (Philippines)
Palarin – (Philippines)
PayFast (Payment Processor)
Rebit.ph – (Philippines)
Romit (formerly Robocoin)
Satoshi Tango – (Argentina)
Zed by ZipZap
Source Washington Post