Just 0.7% of El Salvador’s $5 billion remittance market moved through cryptocurrencies in the first half of 2026, according to the Central Bank. That translates to a mere $35.4 million sent via digital currencies, despite a 39% increase from the previous year.
Traditional channels dominate, with banks and remittance companies handling over 84% of the funds sent back home by Salvadorans abroad. Cash remittances, involving hand-delivered money during visits, rose to 3.8%, still overshadowing crypto’s share.
El Salvador’s bitcoin law, passed in 2021, aimed to boost cryptocurrency use for remittances, promising faster settlements and savings on fees. The government-backed Chivo wallet was central to this effort but is now being phased out following an IMF agreement, ending hopes of cutting $400 million annually in transaction costs.
While crypto remittance volumes improved from $25.4 million in early 2025, this growth is modest against the backdrop of the broader $5 billion inflow. The preference for traditional methods shows little sign of shifting, even as digital currencies gain traction elsewhere.
This content is for informational purposes and does not constitute financial advice.
