Bitcoin News
By Pankaj K
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El Salvador made headlines around the world by becoming the first country to make Bitcoin legal tender in 2021.
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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.
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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.
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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…
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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.
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Remittance Use Remains Low One of the main goals of introducing Bitcoin in El Salvador was to improve the remittance process.
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Even at the peak of Bitcoin’s popularity in the country, remittances using the cryptocurrency accounted for less than 1% of all incoming transfers.
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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.
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Comparing El Salvador to Venezuela It’s worth comparing El Salvador’s situation to other countries with high Bitcoin usage, such as Venezuela.
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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…
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Chivo Wallet Faces an Uncertain Future Chivo Wallet, once seen as the centerpiece of El Salvador’s crypto ambitions, is now on shaky ground.
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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…
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Conclusion: Adoption Numbers Need Context While it’s true that over 70% of Salvadorans have tried Bitcoin, long-term adoption tells a different story.
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Bitcoin’s impact on remittances has been minimal, and the government-backed Chivo Wallet is struggling to stay relevant.
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The takeaway? High ownership numbers may sound impressive, but they don’t always reflect actual use or value.
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