Bloomberg has reported that Mexicans have grown increasingly concerned that incoming President Donald J. Trump may follow through on his oft-repeated campaign promise to block remittances sent from the more than 6 million Mexicans illegally living in the United States to their families south of the border. That remittance blocking plan was proposed by Trump as a way to compel the Mexican government to pay for the President-elect’s proposed border wall between the two countries – a wall that Trump claims would secure the border and prevent the flow of illegal aliens, drugs, and potential terrorists into the U.S.
Meanwhile, citizens in Mexico are reportedly ramping up their Bitcoin usage, as the country has seen increased Bitcoin trade on exchanges that appear to be enjoying a sustained period of success. In remarks published by PaymentsSource, Bitso exchange CEO Pablo Gonzalez noted that Mexican interest in Bitcoin is rising – largely in response to the election of Donald Trump. The Mexican peso saw a dramatic drop in value of as much as 20% on November 8th – a day that also saw a new record set by the Bitso exchange. Gonzalez said that the day the U.S. elected Trump “was our highest-volume day historically, with about $13.5 million [pesos] in purchases. A lot of Mexicans were panicking and buying bitcoin.”
In the end, that panic could be for naught, as some are already suggesting that Trump’s hardline campaign positions may not accurately predict how he’ll govern on this issue. For now, however, there is a growing black market to facilitate a transfer of wealth to Mexico from its citizens in this country, even as ordinary Mexicans back home are stocking up on the remittance transfer alternative that most of them hope they’ll never need to use.