Reports from the Central Bank of El Salvador show that in the first quarter of 2025, the value of remittance through cryptocurrency dropped sharply by 44.5% compared to the same period in the first four months of 2024. The total amount received by Salvadorans through this channel only reached 16 million USD, significantly down from 28.83 million USD last year. A deep decline, drawing much attention in the digital financial ecosystem.
Notably, remittance in cryptocurrency only accounts for 0.52% of the total remittance volume, while from January to April, traditional remittances reached over 3 billion USD. The rate is too modest, not yet reaching 1%. This reflects a clear stagnation of cryptocurrency in the cross-border asset transfer sector.
Analyses indicate that the country's abandonment of Bitcoin as a legal payment instrument, along with Bitcoin being isolated from the public sector, has negatively affected trading metrics. This reduces both the popularity and the level of cryptocurrency adoption in the domestic market.
In addition, the move to dissolve the Chivo wallet – the electronic wallet promoted by the government for transferring money – is also considered a key reason for the sharp decline in cryptocurrency remittance volume. The cryptocurrency remittance ecosystem in El Salvador is currently facing many legal and infrastructural challenges.
Source: https://tintucbitcoin.com/chuyen-tien-dien-tu-el-salvador-giam-manh/
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