Crypto transfers to El Salvador decreased by 18 % in early 2023
Crypto transfers to El Salvador decreased by 18 % in early 2023
Transfers in Bitcoin and other cryptocurrencies sent to El Salvador decreased by 17.8 % in the first two months of 2022 compared to 2022, according to the latest data published by the Central Reserve (BCR) of the country.
According to the declaration, El Salvador received transfers of $ 15.98 million for cryptocurrencies. This amount represents a decrease of $ 3.47 million compared to the same period of the previous year when the country registered over 19.45 million dollars of crypto transfers.
crypto transfers made 1.34 % of the total received.
According to BCR information, the transfers received through cryptocurrencies only made 1.34 % of the total income of the country, which were almost $ 1.2 billion by the last report.
Although the percentage decline in transfers in the past two months was almost 20 % compared to 2022, the truth that the use of cryptocurrencies for international transactions has not significantly influenced the Salvadorian economy since the introduction of the Bitcoin Act. Most Salvadorians send money with traditional services, and the amount of money they send is fairly the same.
In 2022, more than $ 7 billion in transfers were sent to the Central American country; According to Prensa Latina, however, only $ 126 million were sent with cryptocurrencies.
This shows that the economic policy surrounding Bitcoin proposed by President Nayib Bukele has not yet been received by Salvadorians, since the vast majority still preferred Fiat services to crypto-powered options despite the high transaction costs and many other disadvantages.
One of the most likely reasons for which many experts indicate is the lack of crypto formation among the population. When bukele promoted the Bitcoin law to declare BTC as a legal currency, the Salvadorians did not know what the cryptocurrency really was, how to use it or what advantages it offered.
Advantages of the Bitcoin Act in El Salvador
The Bitcoin law may have a limited influence on the transfer industry, but there is an area that thrives for crypto thanks to Bukeles love: tourism and foreign investments.
Bukele explained that tourism in El Salvador has increased by 95 % since the introduction of the Bitcoin Act. In addition, the president said in an interview that "there are many bitcoiners who want to go to the country in which Bitcoin is legal means of payment".
In a similar way, the Minister of Tourism of El Salvador, Morena Valdez, explained in early 2022 that the country had become an attractive destination for Americans that make up 60 % of the entire visitors. The president also pointed out to promote his war against organized crime. On the other hand, the enthusiasm of the President for Bitcoin helped him to build relationships with Pro-Bit-US politicians such as José "Joe" Esparza, the deputy foreign minister of Texas, with which he also talks about the opening of a second Bitcoin message and the expansion of other economic and trade exchange projects.He also has connections to large crypto influencers such as Max Keizer, Stacy Herbert, Ray Yousef and Jack Mallers, who could possibly help to spray more money into the local industry and to give the country's economy more dynamics.
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