Crypto Remittances to El Salvador Down 18% in Early 2023

[ad_1]

Bitcoin and other cryptocurrency remittances sent to El Salvador fell 17.8% in the first two months of 2023 compared to 2022, according to recent data released by the country’s Central Reserve Bank (BCR). reported by Agencia EFE.

According to the statement, El Salvador received a total of $15.98 million in remittances via cryptocurrencies. This amount represents a decrease of $3.47 million from the same period a year earlier, when the country saw over $19.45 million in crypto remittances.

Crypto remittances accounted for 1.34% of the total received.

According to information from the BCR, remittances received via cryptocurrencies accounted for only 1.34% of the total received by the country, which until the last report totaled nearly $1.2 billion.

Although the percentage decline in remittances over the past two months was almost 20% compared to 2022, the truth is that since the implementation of the Bitcoin law, the use of cryptocurrencies for international transactions had no significant impact on the Salvadoran economy. Most Salvadorans send money using traditional services, and the amount of money they send is about the same.

In 2022, more than $7 billion in remittances were sent to the Central American country; however, only $126 million was sent using cryptocurrencies, according to Prensa Latina.

This shows that the economic policy around Bitcoin proposed by President Nayib Bukele has yet to resonate with Salvadorans, as the vast majority still prefer fiat services to crypto-powered options despite high transaction costs and many other disadvantages.

One of the most likely reasons pointed out by many experts is the lack of crypto education among the population. When Bukele promoted the Bitcoin Law to declare BTC legal tender, Salvadorans had no idea what cryptocurrency really was, how to use it, or what benefits it offered.

Benefits of Bitcoin Law in El Salvador

The Bitcoin law might have limited impact on the remittance industry, but there is one area that is thriving thanks to Bukeles’ love for crypto: tourism and foreign investment.

Bukele said tourism in El Salvador has increased by 95% since the implementation of the Bitcoin law. Moreover, the president said in an interview that there are a lot of bitcoiners who want to go to the country where bitcoin is legal tender.

Likewise, El Salvador’s Minister of Tourism, Morena Valdez, said in early 2022 that the country has become an attractive destination for Americans, who make up 60% of total visits. It was also highlighted by the president as a way to promote his war on organized crime.

On the other hand, the president’s enthusiasm for bitcoin has helped him build relationships with pro-bitcoin US politicians like Texas Undersecretary of State Jos Joe Esparza, with whom he is discussing the opening of bitcoins. a second Bitcoin embassy, ​​as well as the expansion of other economic and commercial exchange projects.

He has also established connections with major crypto influencers like Max Keiser, Stacy Herbert, Ray Youssef and Jack Mallers, which could potentially help pump more money into the local industry and bring more momentum to the industry. country’s economy.

[ad_2]