On Tuesday GOP Rep. Mike Rogers announced legislation that plans to charge a 2% tax on remittances from Americans to Mexico and other South American Countries in order to offset costs of Trump's proposed border wall. Some believe this will lead to a mass adoption of Bitcoin and other cryptocurrencies to avoid such legislation.
What Rogers said: "It's my understanding that we have over $30 billion a year that are sent in remittances out of this country to South American countries, mostly to Mexico. I intend to introduce legislation entitled the Border Funding Act of 2017 that would put a 2% tax on those remittances, such as Western Union and MoneyGram remittances that would generate close to $1 billion a year." Why Bitcoin? Rogers specifically cited licensed money transfer companies, and his bill likely would extend to any other financial institution that handles actual currency, such as banks. But Bitcoin isn't legally-recognized currency. It's just code. That means Bitcoin-based money transfer companies like Abra are digital asset custodians rather than financial asset custodians (i.e., they never touch money), and are highly unlikely to be covered under such a bill.