El Salvador is the first country to officially accept Bitcoin as legal tender, ushering in a new financial era. President Nayib Bukele made cryptocurrencies legal in 2021, and El Salvador’s central bank now holds 5,748 BTC in its reserves. Bitcoins’ worth now stands at a whopping $363,836,214, while BTC is trading at $63,297.
However, despite being the flag-bearer of Bitcoin and cryptocurrencies, El Salvador residents are only learning about their usage. Transactions are mostly settled in the US dollar, while only a handful of them use cryptocurrencies. Widespread use of cryptocurrencies is yet to be a reality in El Salvador despite it being an official tender.
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Just 1.1% of Remittances Are Being Made in Bitcoin & Cryptocurrencies in El Salvador: Central Bank Report
Source: BuyUcoin
The Central Bank of El Salvador published the latest report showing that only 1.1% of all remittances are done in Bitcoin and cryptocurrencies.
The majority of transactions are still settled in the US dollar, not cryptocurrencies. The 1.1% represents $57.4 million out of the $5.46 billion sent to El Salvador between January and August 2024.
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The report states that remittances in cryptocurrencies totalled $260 per shipment on average. Remittances in Bitcoin are also on a decline in El Salvador compared to previous years. In 2022, $84.8 million was received in cryptocurrencies in El Salvador, and in 2023, the number fell to $59.5 million. In 2024, the numbers were further reduced to $57.4 million and could dip again in 2025.
The Central Bank of El Salvador wrote that 58.3% of remitters are comfortable sending Bitcoin through private financial entities. Only 37.9% of the people send cryptocurrencies through the official channels of the banking institutions.
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While 1.1% seems smaller, acceptance of digital currencies needs time as it’s still in its novice stages.