It is becoming evident that this time around, President Donald Trump will finally succeed in getting the $5 billion for his border wall funding. This is because the 13-day government shutdown end is nowhere in sight as Trump is not ready to back down on a promise to his base that got him in the oval office in the first place. Therefore, in the end, there will be a form of compromise from the Schumer and Pelosi-led Democratic party that will lead to the construction of a wall spanning the entire southern border with Mexico.
Border Wall Will Necessitate The Need For Cryptos
From a Cryptocurrency point of view, the fight between Trump and Democrats over physical borders is creating an opportunity for the adoption of Cryptos to a larger scale. This is due to the fact that the US already has a large migrant population that the government projects to be as high as 40 million people with ties to foreign countries. This population segment is constantly in need of cross-border payment solutions as they are in most cases the only source of income to their friends and relatives back in their native homes in Central America, Mexico, and elsewhere.
Since this population entails a large population of undocumented immigrants who wish to avoid the formal money-remittance platforms for fear of being tracked by ICE and repatriated, there will be an increased need for Cryptos. Digital Assets are decentralized, have lower fees, are instant, and can be sent to any part of the globe on a simple mobile app.
Ripple And Bitcoin Might Be Replacing Western Union Soon
The efficiency of XRP and BTC remittances is prompting Western Union to start considering adopting Cryptocurrencies. WU has been the leading money remittance platform for years especially for Mexicans in the US and other migrant workers who have been supporting family and friends back home. However, the entry of Trump in 2016 and the November midterms election of a Republican-controlled Senate under Mitch McConnell majority leadership means that the local immigrant population is no longer at ease using Western Union and other mainstream platforms. Hence, Cryptos will fill the void and offer a better way of money remittance.
Benefits of crypto-based cross-border payments are immense. Firstly, Crypto models do not impose fees in recipients but senders as they add data to a Blockchain platform. The only charges that recipients incur occur in withdrawal points during the conversion of Crypto to fiat. For example, in Mexico, there are Bitcoin ATMs that charge a percentage fee when users withdrawal Pesos from their Bitcoin Wallets.
Secondly, there are many merchants and service providers who are accepting Cryptocurrencies all over the world. Hence, recipients can directly use their Digital Assets as currencies and replace fiat money that is often exposed to devaluation, and inflation risks.
Liquidity Network Effect
For Cryptocurrency platforms such as Bitpay, Binance, Coinbase, etc. to succeed in competing with leading remittance platforms such as Western Union, Money Gram, and Rio, there needs to a liquidity network effect. This is the ability of a platform to support diverse Crypto-Fiat transactions such as BTC-Peso conversion and to be accepted by many merchants.
Meanwhile, President Donald Trump’s policies, outside of politics, might be the silver bullet to mainstreaming Cryptocurrency usage.