TechFlow news, according to Bitcoin.com, central bank data from El Salvador shows that since October 2024, the proportion of cryptocurrency remittances in the country has consistently remained below 1% of total remittances. This contrasts sharply with the nearly 5% peak recorded in October 2021 when the country first adopted bitcoin as legal tender.
Financial writer John Paul Koning pointed out that despite President Nayib Bukele's claims that traditional financial institutions charge up to 25% in remittance fees while the official digital wallet Chivo enables zero-fee transactions, cryptocurrency remittances have failed to gain widespread adoption among the country’s dollarized population.
Under an agreement reached with the International Monetary Fund (IMF), the Salvadoran government will terminate or sell Chivo's operations and eliminate bitcoin’s legal tender status, aiming to reduce bitcoin’s role in its economy.
