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El Salvador made headlines around the world by becoming the first country to make Bitcoin legal tender in 2021. Recently, figures from a Cornell University study sparked renewed interest, claiming over 70% of Salvadorans have used Bitcoin at some point. While these numbers seem impressive, the context behind them reveals a different story.
What Sparked the Surge in Bitcoin Use? The massive spike in Bitcoin ownership can largely be traced back to a government-led campaign to encourage cryptocurrency use. When President Nayib Bukele pushed to make Bitcoin an official currency, the government introduced the Chivo Wallet app—a digital wallet specifically designed to support Bitcoin transactions.
To promote usage, the government offered every citizen a $30 airdrop in Bitcoin once they registered and completed a Know-Your-Customer (KYC) verification process. Unsurprisingly, this incentive led to a surge in Chivo Wallet downloads and temporary Bitcoin usage.
The Reality Behind the 70% Ownership Rate Although more than 70% of Salvadorans may have downloaded the Chivo Wallet and briefly interacted with Bitcoin, long-term usage tells a different story. According to the U.S. National Bureau of Economic Research (NBER), around 60% of people who received the airdrop eventually stopped using the app altogether. Many users simply cashed out the free Bitcoin and never looked back.
This drop-off indicates that while initial adoption was high, it was mostly driven by short-term incentives rather than genuine interest or trust in cryptocurrency.
Remittance Use Remains Low One of the main goals of introducing Bitcoin in El Salvador was to improve the remittance process. Since a large portion of the country relies on money sent from abroad, Bitcoin was expected to lower fees and speed up transactions. However, this hasn’t panned out as hoped.
Even at the peak of Bitcoin’s popularity in the country, remittances using the cryptocurrency accounted for less than 1% of all incoming transfers. Most Salvadorans still prefer using traditional fiat-based services, which they view as more reliable and easier to use.
In June 2025, crypto-based remittance flows remained below the 1% mark, showing that Bitcoin has yet to significantly impact one of the country’s most important financial channels.
Comparing El Salvador to Venezuela It’s worth comparing El Salvador’s situation to other countries with high Bitcoin usage, such as Venezuela. In Venezuela, adoption has grown steadily due to economic instability, hyperinflation, and the devaluation of the national currency. For Venezuelans, Bitcoin offers a relatively stable alternative.
In contrast, El Salvador’s Bitcoin adoption was more of a top-down initiative. The government pushed it hard, but without ongoing incentives or a pressing need, most people didn’t see the value in continuing to use it.
Chivo Wallet Faces an Uncertain Future Chivo Wallet, once seen as the centerpiece of El Salvador’s crypto ambitions, is now on shaky ground. Reports suggest that the platform is losing users, and with many citizens abandoning the app after the airdrop, the government might scale back or even shut down the project in the future.
Security concerns and usability issues have also contributed to its decline. Without significant improvements or renewed incentives, it’s unlikely that Chivo Wallet will regain its initial momentum.
Conclusion: Adoption Numbers Need Context While it’s true that over 70% of Salvadorans have tried Bitcoin, long-term adoption tells a different story. The spike was driven largely by free giveaways, and most people abandoned the cryptocurrency once the money was spent.
Bitcoin’s impact on remittances has been minimal, and the government-backed Chivo Wallet is struggling to stay relevant. El Salvador’s experiment with Bitcoin may have started with big headlines and bold promises, but sustaining real, organic adoption will take much more than a $30 incentive.
The takeaway? High ownership numbers may sound impressive, but they don’t always reflect actual use or value. For now, Bitcoin adoption in El Salvador remains more of a trial than a success story.
