Bitcoin Remittances to El Salvador Jump 300% Before BTC Becomes Legal Tender

Bitcoin remittances to El Salvador enjoyed a sharp increase as much as over fourfold in May from the previous year, based on the data from Chainalysis, a blockchain analysis company.

The monthly Bitcoin transfers of under $1,000 to El Salvador reportedly amounted to $1.7 million in May, representing more than a 300% increase from $424,000 the previous year. And it peaked in March at $2.5 million. 

Even if remittances using Bitcoin have boomed, El Salvador depends heavily on money sent back from workers abroad. World Bank data showed remittances to the country made up nearly $6 billion or around a fifth of GDP in 2019, one of the highest ratios in the world.

El Salvador last week approved President Nayib Bukele’s proposal to embrace the cryptocurrency, becoming the first country in the world to pass a bill adopting Bitcoin as legal tender. And now the country is focusing on building a Bitcoin mining hub. Whereas, it has risen the IMF’s concern over its economic issues.