BCGAME - Free 5BTC Daily Bonus!- Cryptocurrency remittances drop 45% in El Salvador
- Bitcoin Loses Strength as a Money Transfer Option
- Cryptocurrency share in remittances is 0,52%
Cryptocurrency remittances to El Salvador registered a sharp drop of 44,5% in the first quarter of 2025, compared to the same period in 2024, according to official data. The decline represents the first significant decline since the Central American country adopted Bitcoin as legal tender in 2021.
EL SALVADOR'S CRYPTO REMITTANCES DROP 44.5% IN Q1 2025 TO $16M
Bitcoin-based remittance volume in El Salvador fell sharply from $28.83 million to $16 million in the first quarter.
Despite national adoption efforts, many users still prefer traditional remittance services due to… pic.twitter.com/bN1KXBJSmZ
— Crypto Town Hall (@Crypto_TownHall) June 14, 2025
The volume of cryptocurrencies transferred via remittances fell to just $16 million at the start of the year, compared to $28,83 million in the entire previous year. At the peak of adoption in late 2021, the amount had reached $57 million, mostly concentrated in the state-owned digital wallet Chivo.
The decline is directly linked to Bitcoin's volatility, which ranged between $93.907 and $108.949 between January and May 2025. This price instability discouraged some users from continuing to use crypto assets as a means of sending money.
In addition to market fluctuations, other factors such as regulatory obstacles and limited adoption by the population also had a negative impact. Today, remittances via cryptocurrencies represent only 0,52% of the US$3 billion in remittances moved to the country.
The government of El Salvador had invested in the adoption of cryptocurrencies as an economic strategy to reduce transaction costs, expand access to the financial system and reduce dependence on intermediaries such as Western Union. The remittance sector in the region was estimated to be worth up to US$7 billion.
However, the low level of utilization and the reduction in transaction volume indicate that the expected benefits have not yet materialized in a significant way. Despite this, projections indicate that digital transfers — excluding cryptocurrencies — could reach US$148,39 million in 2025, up from the previous year’s total.
This estimate suggests that, even with the decline in cryptocurrency transactions, the digitalization of money transfer methods continues to advance in El Salvador, but through alternative paths to blockchain and Bitcoin.
