in January 2022, cryptocurrency payments represented 2.44% of total remittances.
Critics of El Salvador’s Bitcoin adoption have pointed to these figures as evidence that the country’s plan to make Bitcoin legal tender has failed to gain traction. The move, which was announced by President Nayib Bukele in June 2021, was met with both praise and criticism from the international community.
Proponents of the plan argue that it will help to boost financial inclusion and reduce the cost of remittances, which are a vital source of income for many Salvadorans. However, critics have raised concerns about the volatility of Bitcoin and the potential for it to be used for illicit activities.
Despite the low adoption rate of cryptocurrency payments, the BCR noted that the overall volume of remittances into El Salvador has continued to grow. This suggests that the country’s economy is still benefiting from the flow of funds from abroad.
The BCR also revealed that the average remittance amount in January 2023 was $305, which is slightly higher than the average of $299 in January 2022. This indicates that Salvadorans are receiving more money from their loved ones abroad, which could help to boost consumer spending and stimulate economic growth.
Overall, it remains to be seen whether El Salvador’s Bitcoin adoption will be successful in the long run. While the low adoption rate of cryptocurrency payments may be a cause for concern, the continued growth of remittances suggests that the country’s economy is still on the right track. As such, it will be important to monitor the situation closely in the coming months and years.
