Mexico Sees 2% to 3% of Remittances Shift to Stablecoins Amid 1% Cash Tax

Mexico is witnessing a significant surge in the use of stablecoins for remittances, driven by the impending 1% tax on cash remittances from the United States. This tax, set to take effect on January 1, 2026, has prompted Mexican migrants to explore alternative transfer methods, with cryptocurrencies and prepaid cards emerging as viable options. Mexico is a major recipient of remittances, with the Economy Secretariat reporting $13.87 billion in remittances for early 2025. The new tax specifically targets cash-based transfers, making stablecoins an attractive alternative for migrants sending money back home.

In 2024, crypto remittances to Mexico reached $800 million to $1.2 billion, representing 2% to 3% of total remittances. Stablecoins, particularly USDT (Tether), dominated these transactions, with Bitcoin and Ethereum following closely. Mexican exchange Bitso processed more than 10% of U.S.-Mexico remittance volume during 2024, totaling $6.5 billion in transactions. Bitso confirmed that stablecoins were the primary choice for cross-border transfers, highlighting the growing preference for cryptocurrencies in Latin American remittances.

The adoption of cryptocurrencies for remittances offers several key benefits, including lower transaction fees, faster transfer speeds, and reduced intermediary requirements. These advantages are particularly beneficial for migrants sending money to their relatives. Central American financial authorities are also examining the potential applications of cryptocurrencies. The Central American Monetary Council (SECMCA) is studying a proposal for a regional stablecoin, the “Central American Peso” ($CA), which could support currency stability and simplify cross-border payments. However, formal stablecoin regulations do not currently exist regionally, and blockchain technology may improve financial inclusion.

Exchanges such as Bitso, Binance, and local platforms enable the purchase of stablecoins using local currencies, including Mexican pesos (MXN) and Costa Rican colón (CRC). Some exchanges accept credit cards or bank transfers, further promoting wider usage. The rising traditional remittance fees are accelerating the adoption of cryptocurrencies, with stablecoins showing increased use for Mexico-bound transfers. As the market evolves, financial systems are adapting to accommodate this shift, reflecting the growing importance of stablecoins in the remittance landscape.