Crypto in El Salvador: Dead on Arrival?

by

Well, shucks, folks! It seems them fancy crypto remittances just ain’t catchin’ on in El Salvador 🤔. According to the Central Bank, crypto flows from abroad have plummeted by a whoppin’ 45% compared to the first four months of 2024. And let’s be real, that’s a mighty small drop in the bucket – less than 1% of all funds sent by foreigners to family and friends 📊.

Now, I know what you’re thinkin’, “What in tarnation is goin’ on here?” And the answer is, crypto just can’t seem to break into the remittance structure in El Salvador 🚫. Despite all the hullabaloo about its advantages, it’s just not gainin’ traction.

The numbers don’t lie, folks. The volume of remittances processed through crypto means fell by 44.5% during Q1 2025 compared to the same period last year 📉. That’s a sharp decline from $28.83 million to a measly $16 million 💸. And let’s not forget, this is a trend we’re seein’ here – crypto remittances just can’t seem to gain momentum 🔄.

Now, I reckon there are a few reasons for this. First off, them financial institutions are still the preferred choice for Salvadorans, despite all the fees associated with ’em 🤑. And secondly, the recent abandonment of bitcoin as legal tender and the “confinement” of bitcoin from the public sector might have given folks the impression that crypto is bein’ shown the door 👋.

And don’t even get me started on the dissolution of Chivo Wallet, the state-promoted wallet that was supposed to make remittances a breeze 📈. That’s just one less government-sanctioned rail for citizens to complete these transactions 🚂.

President Bukele was a big proponent of crypto for remittances, claimin’ it would help save Salvadorans a pretty penny in fees 💸. But it seems that just ain’t the case 🙅‍♂️. Crypto’s utilization has been trendin’ down since its all-time high in October 2021, when it represented a whoppin’ 5% of all remittance inflows 📊.

Crypto in El Salvador

Read More

2025-06-14 10:57