5 Years After the Bitcoin Law, Crypto Accounts for Just 0.7% of El Salvador’s $5B Remittance Market
The Central Bank of El Salvador reported that cryptocurrency remittances accounted for only 0.7% of all volumes received during the first half of 2026. Between January and June 2026, just $35.4 million of the over $5 billion sent to Salvadorans was settled using digital currencies.
Despite a 39.1% rise from the $25.4 million recorded in H1 2025, crypto adoption for remittances remains lackluster five years after the Bitcoin Law made bitcoin legal tender. Traditional channels still dominate, with banks and remittance companies processing over 84% of all funds.
The state-sponsored Chivo wallet, promoted by President Nayib Bukele to bypass incumbents like Western Union, is winding down operations as part of a credit agreement with the International Monetary Fund (IMF). Early estimates suggested that switching to crypto could save Salvadorans $400 million annually in fees, but that goal has not materialized.
Cash remittances handed over personally during travel accounted for 3.8% of inflows, still far above crypto’s share. Total remittances rose 4.5% year-over-year to $5.06 billion, indicating that Salvadorans continue to rely on conventional methods to send money home.