El Salvador's Crypto Remittances Trail Behind Traditional Channels Despite Government Hopes

El Salvador's adoption of cryptocurrency as a legal tender has not led to expected growth in remittance volumes. According to data from the Central Bank of El Salvador, only $35.4 million out of over $5 billion received by Salvadorans during the first half of 2026 was settled using digital currencies. This represents less than 1% of all funds sent to the country.

The figure is up significantly from the same period last year, with a 39.1% annual rise in crypto remittances reaching $25.4 million. However, it still lags behind traditional channels, which account for over 84% of all volumes received.

Remittance companies and banks are the preferred channels for Salvadorans to send money home, despite early hopes that cryptocurrency could save them $400 million per year in transaction and middlemen fees.

The state-sponsored Chivo wallet, promoted by President Nayib Bukele as a way to receive remittances and payments, is winding down operations as part of an IMF deal. Despite this, Salvadorans still rely on traditional channels for sending money home.