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El Salvador has received more than $50 million in Bitcoin (BTC) via remittances

According to official information from the Central Bank of The Savior. Salvadorans would have received more than 50 million dollars in remittances through BTC wallets in just five months, from January to May, that is, an average of 10 million dollars per month in remittances in Bitcoin (BTC).

Salvadorans would have received more than 50 million dollars in remittances through BTC wallets in just five months, from January to May, that is, an average of 10 million dollars per month in remittances in BTC. These data have been estimated based on the information provided by the Central Reserve Bank.

remittances

Salvadorans would have received more than 50 million dollars through purses from cryptocurrencies. Although, this figure only represents less than 2% of the total foreign currency received. Even so, it is necessary to clarify that the amount is from January to May 2022, so if the trend continues, the country could exceed 100 million dollars of remittances in BTC by the end of the yeara not insignificant amount if one considers that the legalization of BTC has only one year.

Money remittances received by El Salvador between January and May 2022 rose by approximately 4%, compared to the same period of 2021reaching $3,145.87 million dollars, according to data from the Central Reserve Bank (BCR).

January February March April May Total
552.74
572.64 676.88 641.83 701.78 3145.87
Remittances El Salvador January-May, data in millions of US dollars. Own Elaboration Source: Central Reserve Bank.

United States and the Salvadoran Economy

Within the context of family remittances, on which the Salvadoran economy largely depends; the majority were sent mainly by Salvadorans residing in the United States, who exceeded those received during the same period in 2021.

According to published information; The United States continues to be the country par excellence where the largest number of remittances originate, occupying more than 90% of the total. Approximately 94% of the remittances have come from the United States, while the rest come from its neighboring country, Canada, or from Europe and the UK.

This highlights the importance that the North American country continues to have for the economy of El Salvador, despite the recent diatribes between both administrations.

“It’s okay, boomers… They have no jurisdiction over a sovereign and independent nation. We are not your neighborhood, your backyard or your front yard. Stay out of our internal affairs. Don’t try to control something you can’t control.”

On the one hand, the result has been employed by opponents of Bitcoin to argue about “its inefficiency and inability to bring positive results to the country.” On the other hand, it could be said that there is a “minority” that has found a preference for Bitcoin as a support for remittances. It should also be noted that this last year has not been the best for cryptocurrencies-especially in recent months- so nor should one expect much optimism regarding its use in remittances.

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