El Salvador received more than USD 115 million in bitcoin remittances in 2022

The percentage does not exceed 2% of total remittances. However, the estimate is only based on the Chivo system.

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The Central Bank of El Salvador provided data on the volume of remittances that entered the country through different means of payment. It highlights the fact that cryptocurrencies played an equally relevant role as cash remittances.

According to the country’s main financial institution, El Salvador received a total of USD 6,981 million in remittances between January and November 2022, with a growth of 3.4% compared to 2021.

Family remittances sent to bank accounts represent 31.2% of the total, while 65% corresponds to family remittances that were “withdrawn in cash”.

“116.4 million USD were received through digital wallets of cryptocurrencies, with a participation of 1.7%”, says the Central Bank’s statement.

It is assumed that this percentage represents an estimate calculated by the institution through Chivo – an application that works as a wallet.

It should be noted that the Central Bank of the country does not offer estimates related to other means of payments, such as exchanges or self-custody wallets (much more difficult to determine).

Read Also: One year ago, El Salvador adopted bitcoin as a means of payment: what does its portfolio look like now?

It is worth noting that many El Salvadorians think it is better NOT keep funds in the Chivo wallet – which is a wallet issued and managed by the government.

This can explain the relatively low adoption of that system as a means of payment and method for sending or receiving remittances in the country.

Another point of view would suggest that, due to inflation, many people have opted to use currencies other than bitcoin.

Still, these data refer solely to the Chivo payment system.

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