Starting January 1, 2026, a 1% tax on cash remittances in the U.S. is leading migrants to seek alternative methods for money transfers, including cryptocurrencies.
Introduction to the New Tax and Its Impact
According to Mexico’s Economy Secretariat, cash remittances from the U.S. reached $13.87 billion in early 2025. This tax specifically targets cash-based transfers, prompting migrants to look for more cost-effective alternatives to send money home.
Cryptocurrencies as Alternatives to Traditional Transfers
In 2024, cryptocurrency remittances to Mexico amounted to $800 million to $1.2 billion, accounting for 2-3% of total remittances. Stablecoins, notably USDT (Tether), have become the preferred option. The exchange Bitso handled over 10% of the U.S.-Mexico remittance volume, highlighting the growing preference for stablecoins.
Regional Initiatives in Stablecoins
Central American financial authorities are examining the application of cryptocurrencies. The Central American Monetary Council is considering a proposal for a regional stablecoin, the "Central American Peso" ($CA), which could facilitate transaction stability and improve cross-border payments. However, formal regulations for stablecoins currently do not exist in the region.
In conclusion, the new remittance tax and the increasing adoption of cryptocurrencies and stablecoins may significantly transform the remittance landscape for Mexican migrants, providing them with more efficient and affordable ways to transfer funds.
