El Salvador Crypto Remittances Remain Low, Accounting for Less Than 1% of Total in December Last Year

BlockBeats News, February 6th, according to Bitcoin com, data from the Central Bank of El Salvador shows that since October 2024, the country's cryptocurrency remittances have consistently accounted for less than 1% of the total. This data sharply contrasts with the peak of nearly 5% in October 2021 when the country adopted Bitcoin as legal tender.

Financial writer John Paul Koning pointed out that despite President Nayib Bukele's statement that traditional financial institutions charge up to 25% for remittances and the official digital wallet Chivo offers zero fees, cryptocurrency remittances have not gained widespread adoption among the country's dollarized population.

Under an agreement with the International Monetary Fund (IMF), the Salvadoran government will terminate or sell the operation of Chivo and revoke Bitcoin's legal tender status to reduce Bitcoin's share in its economy.