El Salvador's Bitcoin Remittance Experiment Falters Five Years On

Five years after El Salvador made Bitcoin legal tender, cryptocurrency remittances in the country still only account for a small fraction of the $5 billion market. According to Pluang, in the first half of 2026, crypto remittances reached $35.4 million, up 39.1% from the previous year. However, this figure is dwarfed by traditional channels like banks and remittance firms, which handle over 84% of the volume.

The government-backed Chivo wallet, promoted to boost crypto adoption and save $400 million in fees, is now winding down under an IMF deal. This shows that despite initial hopes, digital currencies have yet to significantly disrupt remittance flows in El Salvador.