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Less than 2% of all remittances made to crypto accounts El SalvadorNew figures from the government show. And critics say it’s proof that the nation’s bitcoin (btc) The adoption plan has failed.
Expansion The report noted that, according to data from the Central Bank of the Reserve (BCR), remittances to individuals or firms in El Salvador reached the $588 million mark in January this year – a 6.38% increase over the same month in 2022. But remittances made in “cryptocurrency” represented just 1.63% of the total, BCR noted.
In total, $126.7 million worth of crypto was sent to crypto wallets in El Salvador in January.
This figure is a slight decline from last year. BCR has previously disclosed that between September 2021 and June 2022, 1.8% of the total remittances of $6.4 billion sent to the country were made in crypto.
Crypto remittances not increasing in El Salvador?
Remittances, mostly from Salvadorans based abroad, are a major source of income for the country. And with much fanfare the September 2021 bitcoin adoption law was made. The government promised that BTC would provide more options and more convenience for both senders and receivers of remittances.
Indeed, the government even launched a dedicated BTC app designed in large part to facilitate BTC remittances from abroad. But last year’s data showed that Only two out of 10 people who initially downloaded the app are still using it,
The media outlet stated that approximately half a million Salvadoran households received remittances from abroad in the same time period.
Media-based critics have noted that a “disappearing few” Salvadorans now use bitcoin, and few recognize its value as a settlement or remittance tool.
The finance minister has previously responded to such claims that Salvadorans “continue to use” bitcoin in their daily lives.