Bitcoin in El Salvador: Usage Plummets by 99.8%

El Salvador made history nearly three years ago when it became the first country in the world to adopt Bitcoin as an official currency. President Nayib Bukele hailed it as a "revolutionary step," investing millions in the cryptocurrency. Today, however, the enthusiasm has faded, and the reality is stark: Bitcoin plays virtually no role in El Salvador’s economy.
According to JPMorgan, daily Bitcoin transaction volumes have plummeted by a staggering 99.8% since its introduction. Most interactions with Bitcoin are fleeting—brief flashes of activity followed by silence. As for the citizens? They continue to rely on the US dollar, the country’s official currency. Only about 2% of Salvadorans use Bitcoin in daily life—and even then, not frequently. So why is this happening? And why does Bukele remain committed to his experiment?
Why Salvadorans Ignore Bitcoin
The answer is simple yet sobering: there’s no reason to use it. Most businesses, markets, street vendors, and taxi drivers prefer the US dollar—stable, trusted, and universally accepted. Bitcoin? A volatile, unpredictable phantom. If its value drops 20% overnight, a vendor could suddenly find themselves with far less than they expected.
The government had grand plans: financial inclusion for all, cheaper remittances from abroad. But reality hasn’t matched the vision. Most remittances—money sent to Salvadorans from the U.S. or Canada—still flow through Western Union or MoneyGram. Why? Because Bitcoin is just too complicated for many. Who wants to risk hard-earned money in a currency that can swing 50% up or down in a single day?
Volatility, Distrust, and a Broken Wallet
The biggest issue? Bitcoin’s unpredictability. Imagin



e a farmer selling eggs for 100 Bitcoin in the morning, only to discover by evening that they’re now worth just $60. That’s not a transaction—it’s a nightmare. Small wonder people prefer coins and bills.
Then there was the Chivo Wallet, the government’s official Bitcoin app. Initially, it was plagued with problems: server crashes, security flaws, and users unable to log in. Many deleted the app and never touched it again. Even now that the technology has improved, who still trusts it?
Why Bukele Won’t Back Down
This is where politics comes in. Bukele uses Bitcoin as a symbol—a declaration that El Salvador won’t bow to international institutions like the IMF dictating its monetary policy. The IMF has repeatedly urged him to reconsider the Bitcoin policy, warning it could plunge the country into financial instability. But Bukele digs in his heels.
Instead, he keeps buying Bitcoin, even as its price falls. His logic? Eventually, it will rise again—and El Salvador will have a fortune. Critics shake their heads. What if it doesn’t? What if the price keeps dropping and the country sinks deeper into debt?
An Expensive Experiment—With an Uncertain End
El Salvador’s Bitcoin experiment was always a gamble. The results? Disappointing. Usage has all but vanished, the population clings to the dollar, and the economy hasn’t seen any tangible benefits. Yet Bukele remains steadfast—out of pride, principle, or a refusal to admit defeat.
Will Bitcoin ever play a meaningful role in El Salvador? Maybe. But as long as Salvadorans prefer the dollar and the government refuses to listen, it remains an expensive, uncertain gamble. And the people? They watch, sigh, and reach for their old wallets.