El Salvador’s Virtual Asset Remittances Plunge 45%... Warning Signal for Bitcoin Strategy

The scale of El Salvador’s virtual asset (cryptocurrency) remittances, after declaring Bitcoin (BTC) as legal tender, has reportedly plunged by 45% year-on-year. Analysis suggests that concerns are mounting over the country’s Bitcoin-based economic strategy.

According to Coinpedia, a virtual asset-focused media outlet, on the 14th (local time), El Salvador’s virtual asset remittance amount for the first quarter of this year was $16 million (about ₩21,870,000,000), a 44.5% decrease compared to the same period last year. This is the first double-digit decrease since El Salvador adopted Bitcoin as legal tender in 2021.

At one point, the quarterly remittance volume soared to $57 million via Chivo Wallet, but as of now, the total remittance amount ($3 billion) accounts for just 0.52%.

The outlet added, “Volatility in Bitcoin prices and delays in local adoption have been cited as causes for the steep drop in remittance volumes,” and continued, “El Salvador has fostered virtual asset remittances aiming to reduce preexisting remittance fees and expand financial inclusion, but currently it cannot rule out the possibility of a large-scale adoption failure.”