5 Years After the Bitcoin Law, Crypto Accounts for Just 0.7% of El Salvador's $5B Remittance Market

Five years after El Salvador made bitcoin legal tender, the country’s crypto-based remittance channel remains marginal. The Central Bank said only $35.4 million of more than $5 billion in remittances sent in the first half of 2026 used digital currencies, equal to just 0.7% of total inflows. Traditional remittance firms and banks still dominate, handling over 84% of the volume, while cash remittances rose to 3.8%. Although crypto remittances increased 39.1% from the same period in 2025, the growth has not translated into meaningful adoption. The report undercuts the original policy pitch that bitcoin and the Chivo wallet would reduce fees and speed transfers, and it highlights the winding down of Chivo under an IMF-backed deal. Market-wise, the piece is more of a commentary on bitcoin adoption than a direct price catalyst, but it reinforces the theme that real-world usage remains limited despite legal tender status.