Remittances through cryptocurrency wallets in El Salvador dropped 64% in January-19-03-2025

Remittances received through cryptocurrency wallets in El Salvador fell by approximately 64% in January 2025 compared to the same month last year, according to data from the Central Reserve Bank (BCR).

According to the state entity, remittances received in January 2025 totaled $2.44 million, down from $6.77 million in January 2024.

The decrease in these funds, sent via various digital wallets, amounted to $4.33 million.

These remittances accounted for only 0.36% of the total $677.13 million in general remittances received in January of this year.

This is 0.76 percentage points lower than the 1.12% of remittances sent through cryptocurrency wallets out of the total $599.85 million received in January 2024.

Throughout 2024, remittances sent through cryptocurrency wallets in El Salvador reached $85.5 million, reflecting a 3.1% increase compared to $82.93 million in 2023.

El Salvador became the first country in the world to adopt Bitcoin as legal tender, alongside the U.S. dollar, in September 2021, marking one of President Nayib Bukele’s key economic initiatives.

However, more than 90% of the population rejected the everyday use of this cryptocurrency, while the government pushed for tax incentives for investors in this digital asset.

After reaching an agreement with the International Monetary Fund (IMF) for $1.4 billion, the Legislative Assembly, dominated by the ruling Nuevas Ideas (NI) party, repealed the law granting Bitcoin official currency status and reduced the government’s role in its use and circulation.

Despite this, Bukele’s government has continued purchasing Bitcoin, although the IMF conditioned the agreement on not using public funds for this purpose. El Salvador currently holds more than 6,100 Bitcoins, valued at over $500 million.