Remittances through electronic wallets exceed $100 million

Family remittances transferred through digital cryptocurrency wallets in El Salvador show an upward curve so far in 2022. Between the first and second quarters of the year, growth of close to 16.7% was recorded.

The Central Reserve Bank (BCR) reported that only in the first quarter of $29.3 million in remittances entered through blockchain applications, while in the following three months the figure increased to $34.2 million.

As a whole, according to the president of the BCR, Douglas Rodríguez, up to June, $63.5 million in remittances had been received through digital wallets, which represents 2% of the total received. Said amount was not subject to the collection of commissions.

These new figures, despite the fact that there was a decrease when comparing the first quarter of 2022 with the last quarter of 2021, leave the door open for an increase in the number of transactions in the coming months.

Salvadorans have been able to receive remittances through the Chivo wallet and Chivo ATMs since September 2021./Diario El Salvador.

On the other hand, the regulatory institution pointed out that remittances under this modality have already broken the $100 million mark, 10 months after the Bitcoin Law came into effect. Between September 2021 and June of this year, Salvadorans transferred $120.5 million in remittances through crypto platforms to their relatives.

Saving

Bitcoin has circulated as legal tender since September 2021. From the beginning, it was suggested that one of the great benefits for Salvadorans would be the elimination of commission charges for sending remittances.

Now, according to the President of the Republic, Nayib Bukele, this already represents significant savings in the transaction and translates into more funds for families.

«This [bitcoin transactions] will give them freedom and financial security, in addition to receiving benefits; among them, the savings of $400 million a year in commissions to send and receive remittances», said the president at the time.

These types of benefits were also highlighted at the beginning of the year by the head of the International Monetary Fund (IMF) mission in the country, Alina Carare, at a press conference after the evaluation of Article IV was carried out.

Carare especially highlighted that remittances with Chivo Wallet «have a lower cost in terms of transfer.»

Overall growth in remittances

According to the head of the BCR, family remittances in general register growth. In the first half of this year, $3,779 million in received in this concept was reported, with a growth of 3.5%, which means an additional $129 million compared to the same period last year.

«In the month of June alone, $633 million was received in remittances, a figure similar to the monthly average registered so far this year,» Rodríguez said.

Finally, he pointed out that so far this year there have been 12 million transactions in remittances, of which 1.9 million were made in the month of June alone.