Mexico’s President Slams Trump’s ‘Big Beautiful Bill’ Over 3.5% Remittance Tax, Sparking Crypto Backlash

June 9, 2025 – Mexico's President, Andrés Manuel López Obrador, has vehemently condemned a proposed US bill, dubbed the "Big Beautiful Bill" by former President Donald Trump, that seeks to impose a 3.5% tax on remittances sent from the United States to Mexico. The bill, ostensibly designed to fund the construction of a border wall and other security measures, has ignited a firestorm of controversy, particularly within the cryptocurrency community. The crux of the issue lies in the bill's potential impact on the burgeoning use of cryptocurrencies for cross-border payments, and how it threatens financial autonomy.

AMLO's Fiery Response and the Crypto Alternative

President López Obrador, known for his populist stance and staunch defense of Mexican sovereignty, did not mince words in his denunciation. "This is an affront to the Mexican people, a blatant attempt to exploit the hard work of our citizens in the United States," he declared during a televised address earlier today. "We will not stand idly by while they attempt to pilfer the fruits of our labor." López Obrador vowed to explore all available avenues to challenge the bill, including diplomatic negotiations and potential legal action.

Central to Mexico's strategy is exploring alternatives to traditional remittance channels. That is where cryptocurrency enters the picture. Recognizing the potential of digital currencies to bypass traditional financial systems, the Mexican government has quietly encouraged the adoption of crypto for remittances. The proposed US tax, many believe, will only accelerate this trend.

The Crypto Community Reacts: A Decentralized Solution?

The cryptocurrency community has reacted with a mixture of outrage and opportunity. Many see the proposed tax as a direct attack on the principles of decentralization and financial freedom that underpin the crypto ethos. "This is exactly why crypto exists," stated Maria Gomez, a prominent crypto advocate based in Mexico City. "Governments shouldn't be able to arbitrarily tax or control the flow of money. Crypto provides a viable alternative."

For years now, remittance companies and Fintech companies alike have taken an increasing interest in digital currencies to help cross border payments.
- Faster transfers.
- Reduced fees.
- Transparency.
Are all benefits to consider.
It is expected that cross border payment services like Remitly and Western Union start using crypto.

Several crypto-based remittance services have already gained traction in Mexico, offering significantly lower fees and faster transaction times compared to traditional methods. Companies like Bitso and Ripio are at the forefront, facilitating the transfer of value using Bitcoin, Ethereum, and other cryptocurrencies. The proposed tax could be a boon to their business.

The "Big Beautiful Bill": Details and Implications

The proposed legislation, championed by Donald Trump and supported by some Republican lawmakers, argues that the 3.5% tax on remittances is necessary to fund enhanced border security and curb illegal immigration. Proponents claim that the tax would generate billions of dollars annually, which would be earmarked for the construction of a border wall and other enforcement measures.

Critics, however, argue that the tax is regressive and disproportionately affects low-income families who rely on remittances to meet basic needs. They also contend that it could drive remittances underground, leading to a decrease in overall tax revenue and an increase in illicit financial activity. Furthermore, the tax raises serious questions about the US government's reach and authority over international financial transactions.

Impact on the Mexican Economy

Remittances are a vital source of income for many Mexican families, accounting for a significant portion of the country's GDP. In 2024, remittances to Mexico totaled over $60 billion, providing a crucial lifeline for households struggling with poverty and economic hardship. A 3.5% tax on these funds would translate to a loss of over $2.1 billion annually, a substantial blow to the Mexican economy.

The potential economic impact extends beyond individual households. Remittances also contribute to overall economic growth by boosting consumer spending, supporting local businesses, and financing investment in education and healthcare. A decline in remittances could have a ripple effect throughout the economy, leading to job losses, reduced investment, and increased social instability.

Legal and Ethical Challenges

The "Big Beautiful Bill" raises a number of legal and ethical concerns. Some legal scholars argue that the tax could violate international trade agreements and principles of non-discrimination. Others question the legality of the US government imposing a tax on funds that are primarily intended for recipients in another country.

Ethically, the tax is seen by many as a form of exploitation, targeting vulnerable populations who are already struggling to make ends meet. Critics argue that it is morally reprehensible to finance border security measures on the backs of hard-working immigrants who are contributing to the US economy.

Bitcoin and Ethereum: A Technical Snapshot (June 9, 2025)

The cryptocurrency market is currently navigating a landscape shaped by both regulatory anticipation and strategic institutional investments. Here's a snapshot of the technical conditions for Bitcoin (BTC) and Ethereum (ETH) as of today:

As of June 9, 2025, Bitcoin (BTC) is trading at $107,361, reflecting a 1.75% increase from the previous close.

Stock market information for Bitcoin (BTC)

- Bitcoin is a crypto in the CRYPTO market.
- The price is 107361.0 USD currently with a change of 1843.00 USD (0.02%) from the previous close.
- The intraday high is 107361.0 USD and the intraday low is 105426.0 USD.

Ethereum (ETH) is priced at $2,535.72, up 1.17% from the previous close.

Stock market information for Ethereum (ETH)

- Ethereum is a crypto in the CRYPTO market.
- The price is 2535.72 USD currently with a change of 29.43 USD (0.01%) from the previous close.
- The intraday high is 2537.49 USD and the intraday low is 2482.65 USD.

Bitcoin (BTC) Technical Analysis: Price: Currently trading at $107,361. (Source: Binance) Recent Price Action: Bitcoin has seen a notable rally in recent weeks, pushing past previous resistance levels. This surge is fueled by growing optimism surrounding potential regulatory approvals in the US. However, the price has shown some consolidation around the $107,000 level, suggesting traders are taking profits after the recent gains. Technical Chart Patterns: Potential Bull Flag: A potential bull flag pattern is forming on the daily chart. This pattern suggests a continuation of the uptrend if the price breaks above the flag's upper trendline. A breakout could lead to a further rally towards $110,000. Key Support and Resistance Levels: Resistance: $110,000 (psychological resistance), $111,816 (recent record high) Support: $105,000, $100,000 (strong psychological support) Technical Indicators: Moving Averages: The 50-day moving average is well above the 200-day moving average, indicating a strong bullish trend. A potential area of support. Relative Strength Index (RSI): The RSI is currently hovering around 65, suggesting that Bitcoin is approaching overbought conditions. A pullback is possible in the short term. MACD: The MACD line is above the signal line, indicating continued bullish momentum. However, the histogram is showing signs of weakening, suggesting the momentum may be slowing down. Trading Volume: Trading volume has been elevated during the recent rally, confirming the strength of the uptrend. Market Sentiment and Fundamental Factors: Market Sentiment: Bullish, driven by regulatory optimism and institutional adoption. News: Positive news regarding the potential approval of a spot Bitcoin ETF and increased institutional investment. Also the continued discussion of remittances is giving the bulls some life.

Ethereum (ETH) Technical Analysis: Price: Currently trading at $2,535.72. (Source: Binance) Recent Price Action: Ethereum has mirrored Bitcoin's positive momentum, although it has lagged slightly in terms of percentage gains. The price has been consolidating around the $2,500 level. Technical Chart Patterns: Ascending Triangle: An ascending triangle pattern is forming on the daily chart. A breakout above the triangle's upper trendline could lead to a significant rally towards $2,800. Key Support and Resistance Levels: Resistance: $2,600, $2,800 Support: $2,400, $2,300 Technical Indicators: Moving Averages: The 50-day moving average is above the 200-day moving average, indicating a bullish trend. Relative Strength Index (RSI): The RSI is around 60, suggesting that Ethereum has room to run before reaching overbought conditions. MACD: The MACD line is above the signal line, indicating bullish momentum. Trading Volume: Trading volume has been moderate, suggesting that the rally is not as strong as Bitcoin's. Market Sentiment and Fundamental Factors: Market Sentiment: Bullish, driven by positive developments in the Ethereum ecosystem and the upcoming Ethereum 2.0 upgrade. News: Anticipation surrounding the Ethereum 2.0 merge and the continued growth of the DeFi and NFT sectors.

Short-Term Price Analysis and Trading Strategies

Bitcoin (BTC): Bullish Scenario: If Bitcoin breaks above the $110,000 resistance level, it could rally towards $115,000 in the short term. Traders might consider entering long positions on a break above $110,000 with a stop-loss order placed below $105,000. Bearish Scenario: If Bitcoin fails to break above $110,000 and experiences a pullback, it could decline towards the $105,000 support level. Traders might consider entering short positions on a break below $105,000 with a stop-loss order placed above $110,000. Ethereum (ETH): Bullish Scenario: If Ethereum breaks above the $2,600 resistance level, it could rally towards $2,800 in the short term. Traders might consider entering long positions on a break above $2,600 with a stop-loss order placed below $2,400. Bearish Scenario: If Ethereum fails to break above $2,600 and experiences a pullback, it could decline towards the $2,400 support level. Traders might consider entering short positions on a break below $2,400 with a stop-loss order placed above $2,600.

Experts weigh in

Recent analyses highlight significant developments in the cryptocurrency market:
- Bitcoin's Record High Amid Regulatory Optimism: Bitcoin surged to a record high of $111,816, driven by investor optimism surrounding imminent U.S. regulations for digital assets. The proposed Genius Act aims to establish the first framework for regulating stablecoins, contributing to increased investor confidence. (ft.com)
- Metaplanet's Strategic Bitcoin Acquisition: Japanese hotel group Metaplanet announced plans to raise approximately $5.4 billion to increase its bitcoin holdings to 210,000 by 2027. This move would grant the company ownership of around 1% of the total bitcoin supply, valued at about $22 billion at current prices. (ft.com)
These developments underscore the growing institutional interest and regulatory advancements in the cryptocurrency sector.

The Road Ahead: Crypto Remittances in the Spotlight

The dispute over the "Big Beautiful Bill" has thrust the issue of crypto remittances into the spotlight. While the bill's future remains uncertain, its impact on the adoption of crypto for cross-border payments could be significant. If the tax is implemented, it is likely to accelerate the shift towards crypto-based remittance services, potentially reshaping the landscape of international finance.

However, the transition to crypto remittances is not without its challenges. Concerns about volatility, security, and regulatory uncertainty remain. Furthermore, the widespread adoption of crypto requires greater education and awareness among both senders and recipients of remittances.

As governments grapple with the implications of crypto, the future of remittances will likely depend on the ability of policymakers to strike a balance between innovation and regulation. The "Big Beautiful Bill" serves as a stark reminder of the potential for conflict between traditional financial systems and the decentralized world of cryptocurrency. It also serves as a possible way to increase the value of cryptocurrencies, but whether this is a fair way to do so is another question.

YouTube Analysis

Here are some relevant recent YouTube videos that offer additional insights into data analytics:

Video 1: Analyzing data as a business analyst in tech
Video 1 Source: https://www.youtube.com/watch?v=8chbARSxT2o

Video 2: Data Analyst on How to Turn Business Metrics to Insights
Video 2 Source: https://www.youtube.com/watch?v=xlyLxvUfTzc

Conclusion

The proposed US tax on remittances to Mexico has ignited a debate about the role of cryptocurrency in international finance. As governments grapple with the implications of digital currencies, the future of remittances remains uncertain. However, one thing is clear: the crypto community is ready to challenge traditional financial systems and offer alternative solutions to cross-border payments. It should be reitierated that Bitcoin, Ethereum and all other cryptocurrencies are speculative assets, and as such are a inherently volatile. You should do your own research when making investment decisions.