Adoption for Remittances Reach Only 1.1% in El Salvador

The adoption of cryptocurrency, especially Bitcoin, for remittances has failed to surge in El Salvador, even with the support of President Nayib Bukele's administration.

Despite El Salvador's efforts to promote cryptocurrency adoption, especially for remittances, the latest data from the Central Reserve Bank reveals that crypto usage remains minimal.

According to the report, only 1.1% of all remittances sent to the country from January to August 2024 include cryptocurrency, indicating that a vast majority still prefers traditional methods. This 1.1% amounts to $57.4 million out of the total $5.46 billion in remittances received by El Salvador during that period.

Remittance-focused companies continue to dominate the market, handling 58.3% of the transactions, while traditional banks account for 37.9%. The average cryptocurrency remittance stands at $260.

notably, crypto remittances have been declining over the past few years. In 2022, Salvadorans received $84.8 million in digital currency, which decreased to $59.5 million in 2023 and further down to $57.4 million in 2024.

The Salvadoran government has actively promoted the use of cryptocurrency for payments and remittances, even funding Chivo, a national crypto wallet, and offering an airdrop for citizens to encourage them to use bitcoin.

However, despite these efforts, even President Bukele has acknowledged that crypto adoption has failed to gain momentum in El Salvador. Nevertheless, he highlighted other benefits that adopting bitcoin as legal tender brought to the country.

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