[NEWS] Bitcoin remittances in El Salvador account for 1.1% of total remittances

In El Salvador, the use of cryptocurrencies, especially Bitcoin (BTC), for remittances has not increased despite the promotion of President Nayib Bukele's administration. 

According to data provided by the Central Reserve Bank, the central bank, only 1.1% of all remittances sent to the country from January to August 2024 were Bitcoin remittances.

In El Salvador, Bitcoin was adopted as legal tender from 2021. This was the first attempt in the world, and the country was positioned as one of the countries with the most advanced adoption of cryptocurrencies.

However, it became clear that the use of cryptocurrencies is not widespread in various cases.

In the case of remittances, one of the uses for which President Bukele aimed to introduce cryptocurrencies due to the advantages of cost reduction and ease of use, Salvadorans do not use Bitcoin or cryptocurrencies despite the promotion of the government.

The latest Family Remittance Statistics report released by the Central Reserve Bank reveals that Salvadorans still prefer to use US dollars to send and receive remittances.

The report shows that only 1.1% of all remittances sent to El Salvador were crypto assets, with the majority using other methods.

This 1.1% represents $57.4 million out of the $5.46 billion sent to El Salvador from January to August 2024.

Remittance-focused companies still hold the trust of Salvadorans, accounting for 58.3% of these transactions, while traditional banks account for 37.9% of the total remittance volume.

The average cryptocurrency remittance is $260.

The report shows that cryptocurrency remittances have been stagnant since 2022, when Salvadorans received $84.8 million in digital currency. 

In 2023, this figure dropped to $59.5 million, and in 2024, it remained at $57.4 million, indicating a multi-year downward trend. 

The Salvadoran government has worked to encourage the use of cryptocurrency for payments and transfers, offering remittances to Chivo, the national cryptocurrency wallet, and conducting airdrops to familiarize citizens with Bitcoin.

However, President Bukele also acknowledged that cryptocurrency adoption has not progressed in El Salvador, but highlighted other benefits that introducing Bitcoin as legal tender has brought to the country.

El Salvador's Bitcoin Investments Are a Success

El Salvador currently holds 5,875 BTC, valued at $331 million. The country is buying 1 BTC for an average of $43,900 (approximately 6.28 million yen), and has been very successful in building assets in the country.

Reference: Central Reserve Bank
Image: Shutterstock

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