El Salvador bitcoin remittances hit all-time low

El Salvadors cryptocurrency remittances, as a proportion of total remittances, have fallen to new lows, according to data from the Banco Central de Reserva de El Salvador compiled by JP Koning.

The peak period for these transactions was when the law making bitcoin (BTC) legal tender was originally passed in 2021 and has largely fallen since then, to less than 1% of the total remittances at this point.

For December, the total amount of family remittances from “cryptocurrency digital wallets” was $7.22 million.

I charted El Salvador's cryptocurrency remittances from the passing of the “Bitcoin Law” in 2021, which granted bitcoin legal tender status, until its repeal this month. The data speaks for itself.

— JP Koning (@jpkoning.bsky.social) January 31, 2025 at 8:23 AM

Despite this lull in remittances, El Salvador has still attracted a variety of crypto firms, with executives of Tether and Bitfinex purchasing large quantities of real estate in the country.

Tether and Bitfinex have also sought and received a variety of licenses in the country, including for the stablecoin Tether and for the securities exchange Bitfinex Securities.

However, the Nayib Bukele administration has agreed to limit some of the BTC-related activites its engaged in, including no longer accepting BTC for tax payments, in order to enable loan extensions from the International Monetary Fund.