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- Crypto remittances to El Salvador dropped by 45% in early 2025.
- Digital transfers made up just 0.52% of total remittances.
- Government decisions may have discouraged crypto adoption.
El Salvador has seen a steep drop in the use of crypto for remittance payments. Between January and April 2025, Salvadorans received only $16 million through cryptocurrencies.
That figure represents a 45% decrease compared to the remittance inflow of $28.83 million during the corresponding period last year. The Central Bank of El Salvador has published this latest information, indicating that crypto-based transfers now comprise only 0.52% of total remittance inflows.
In contrast, the amount transacted to the country exceeded $3 billion in those four months. Traditional financial services still dominate the market, despite higher fees.
Crypto Remittances Decline in El Salvador
The decline could indicate a shift in policy within the country. Analysts point out that the government’s recent silence on Bitcoin, previously legalized as legal tender, has had an impact. In turn, officials have withdrawn support for initiatives to encourage public adoption of cryptocurrencies. Bitcoin is no longer featured as a key component of the nation’s financial strategy.
One significant change reported was the winding down of the Chivo Wallet. This government-backed wallet permitted users to send and receive Bitcoin with much frictionless ease. Its uncertain future has made more Salvadorans disinterested in trying digital money for remittances.
Most locals remain skeptical, too. They stick with the remittance services they know, even if those are more expensive. The convenience and reliability of proven providers are still worth $10 in savings from a crypto solution.
High Hopes Have Not Matched Reality
President Nayib Bukele has once said that cryptocurrency could help Salvadorans avoid hundreds of millions in yearly remittance fees. That hasn’t turned out yet. The idea was that digital payments would be less expensive and more accessible to families receiving support from overseas.
However, crypto remittances were the highest in October 2021. At one point, it was almost 5% of the total money flowing into the country. Since then, it has declined sharply. This suggests that without government support and a clear infrastructure, widespread adoption is difficult, Ncope. Many challenges remain.
The factors are digital literacy, accessibility, smartphone ownership, and legal clarity. Until these issues are resolved, it’s likely that Salvadorans will continue to prefer traditional methods for getting money from their overseas loved ones. For now, crypto plays a minor role in the remittance landscape.
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