According to recent data published by the country’s Central Reserve Bank (BCR) and reported by Agencia EFE, remittances in Bitcoin and other cryptocurrencies sent to El Salvador during the first two months of 2023 decreased by 17.8% compared to 2022.
The total amount of remittances received via cryptocurrencies was $15.98 million, $3.47 million less than the previous year’s $19.45 million during the same period. Crypto remittances accounted for only 1.34% of the country’s total remittances, which was almost $1.2 billion.
Although the percentage drop was significant, the implementation of the Bitcoin Law has not yet significantly impacted the Salvadoran economy. Most Salvadorans still use traditional remittance services instead of crypto-powered options, with similar amounts of money being sent.
One possible reason for this trend is the lack of crypto education among the population. However, the Bitcoin Law has seen positive effects on tourism and foreign investments in the country. Tourism has increased by 95%, and El Salvador has become an attractive destination for Americans. President Nayib Bukele has also established relationships with pro-bitcoin US politicians and major crypto influencers to bring more dynamism to the economy.