El Salvador Crypto Remittances Plunge 45% YoY in Q1 2025 to $16M Amid Volatility and Waning State Support
El Salvador’s experiment with Bitcoin as legal tender continues to face turbulence, as new data shows a sharp drop in crypto-based remittances during the first quarter of 2025. According to figures released by the Central Reserve Bank of El Salvador, crypto remittances totaled just $16 million from January through March—down 45% compared to the same period in 2024.
This decline underscores growing challenges for Bitcoin adoption in the country, particularly in the realm of remittances, which are a vital part of El Salvador’s economy. Remittances account for around 20% of GDP, with the majority traditionally sent via conventional money transfer services. When Bitcoin was adopted as legal tender in 2021, the government hoped it would lower transaction fees and increase financial inclusion. However, the latest numbers suggest that enthusiasm for crypto remittances has cooled.
Volatility and Adoption Fatigue
One of the major deterrents appears to be Bitcoin’s price volatility. The cryptocurrency has experienced sharp swings over the past year, eroding confidence among everyday users. Many Salvadorans have been hesitant to convert or hold remittances in Bitcoin due to the risk of losing value quickly, especially amid broader global economic uncertainties.
“People want predictability when sending money to family,” said Ricardo López, a financial analyst in San Salvador. “When the price of Bitcoin can swing 10% in a week, it just doesn’t make sense for most households.”
Declining State Incentives
“With less government push and fewer financial perks, the novelty of Bitcoin has worn off,” said Mariana Vázquez, a fintech consultant in Central America. “Without strong incentives or infrastructure, people revert to what they trust.”
Looking Ahead
While the government remains committed to its Bitcoin strategy—including continued promotion of “Bitcoin bonds” and crypto-tourism—the slump in remittance use raises questions about the long-term viability of the initiative for everyday Salvadorans.
Whether Bitcoin can regain momentum in the remittance sector will likely depend on market stability, improved digital literacy, and the development of user-friendly, reliable platforms. For now, the promise of crypto as a remittance revolution in El Salvador appears to be losing steam
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