El Salvador currency - What money do they use
El Salvador is a small but vibrant country in Central America known for its surf-friendly beaches, lush volcanoes, and strong family connections across borders.
Every year, millions of travelers visit El Salvador for both tourism and business. Meanwhile, the country is also deeply connected to its global diaspora – especially in the United States – making remittances an important part of everyday life.
So, whether you’re planning to visit, move, invest, or send money to El Salvador, one important question often comes up: what currency does El Salvador use?
Today, El Salvador uses two official currencies:
- The United States Dollar (USD)
- Bitcoin (BTC)
This dual-currency system makes El Salvador unique on the world stage. However, while both are legal tender, it’s the US Dollar that is used for most purchases, salaries, rent payments, and daily expenses across the country.
That said, let’s explore more about El Salvador's money, including why the country uses the US Dollar as its main currency and some practical tips for using USD while in El Salvador.
What is the currency of El Salvador?
To understand the current currency in El Salvador, it helps to take a quick look at the recent past.
For many years, the country used its own currency, the Salvadoran Colón (SVC)1. Older generations remember it well. However, in 2001, everything changed.
The Switch to the U.S. Dollar (USD)
In 2001, the government decided to replace the Colón with the U.S. Dollar. The goal was to create more stability in the economy and make it easier to do business with the United States. From that year on, the U.S. Dollar became the official currency of El Salvador, and it has stayed that way.
So when you pay for:
- Groceries
- Gas
- A café breakfast
- A pupusa dinner with friends
You’ll pay in USD ($).
Enter Bitcoin (₿) in 2021
Then in 2021, El Salvador became the first country in the world to adopt Bitcoin (BTC)2 as legal tender. This was announced through what's known as the Bitcoin Law.
And yes – technically, you can use Bitcoin to pay for things. Some businesses – especially in places with more tourists like El Tunco3 or El Zonte4 – accept Bitcoin through phone apps or QR codes.
While El Salvador's Bitcoin is part of the financial system, the dollar remains the star of the show.
Why does El Salvador use the US Dollar?
El Salvador officially adopted the U.S. Dollar in 2001, replacing its former currency, the Salvadoran Colón.
This decision is known as dollarization5, and it was made during a time when the country was experiencing economic uncertainty. Prices were unstable, inflation was a concern, and many businesses and families found it difficult to plan for the future.
By switching to the U.S. Dollar, the government hoped to bring more financial stability and encourage economic growth.
Stabilizing prices and inflation
Prior to 2001, the Colón's value fluctuated rapidly, and that influenced the price of common commodities. Foodstuffs would be a certain price one week, and the following week, prices would increase unpredictably.
Conversely, the U.S. Dollar is among the most stable currencies in the world. With its use, El Salvador minimized the risk of sudden price hikes and stabilized living costs. This made individuals and companies feel more secure when saving and spending.
Making business and trade easier
The United States is El Salvador's biggest trading partner6. Most Salvadoran companies depend on United States imports, and much of the country's exports – such as coffee, apparel, and sugar – find their way to United States markets.
Having the same currency helps eradicate the hassles of money exchange during trade, making additional costs low and the financial risks minimal. It also made El Salvador appealing to foreign investors as they prefer doing business where currencies are fixed and stable.
Simplifying remittances from abroad
When the country uses the same currency as the United States, families don’t lose money through exchange rates or fees when receiving support from abroad. The amount sent is the amount received, making the process simpler and more predictable.
The main drawback: Limited monetary control
While using the U.S. Dollar has benefits, it also comes with a trade-off. El Salvador doesn’t print the dollar, which means it can’t control its own money supply or set national interest rates. These decisions are made by the United States.
Bitcoin in El Salvador - How it fits today
El Salvador (as we mentioned) became the first country to make Bitcoin (BTC) a legal form of money. This caught the attention of global media, investors, and cryptocurrency enthusiasts everywhere. Many saw it as a bold experiment to change how we use money.
Government efforts to support Bitcoin
To make it easy for people to use Bitcoin, the government launched:
- Chivo Wallet: A free digital wallet app where you can hold and spend Bitcoin or US Dollars.
- Bitcoin ATMs: Special ATMs were installed in some cities where you can deposit or withdraw Bitcoin.
- Incentives: Every Salvadoran who downloaded the Chivo Wallet got $30 worth of Bitcoin9 as a starting balance.
- Businesses Encouragement: Businesses were encouraged to accept Bitcoin as a payment method, especially in tourist areas.
What adoption looks like in everyday life
Despite all this, adoption has been mixed.
Some people and businesses started using it, especially in areas with international visitors. For example, in popular surf towns like El Zonte and El Tunco, some cafes, hotels, and shops accept Bitcoin regularly. Tourists and digital nomads love to pay directly from their phones.
But for many everyday Salvadorans, Bitcoin is not part of daily transactions. People feel more comfortable using US Dollars because they are familiar, stable, and easy to use. Some Salvadorans also feel uncertain about cryptocurrency because its value can go up and down, and not everyone understands how digital wallets work.
So Bitcoin is available – but optional. You'll see Bitcoin signs in some places, but if you pay with cash in US dollars, it will always be accepted – no questions asked.
Everyday tips for using USD in El Salvador
If you plan a trip to El Salvador or are heading home for a visit, here are some simple tips to help you manage your money with ease. While the U.S. Dollar (USD) is the official currency, daily use can feel a bit different from the United States.
Most local shops, food stalls, and small markets prefer cash. Larger stores, hotels, and gas stations take cards, but it’s smart to carry cash for small purchases or rural areas.
The most useful are $1, $5, $10, and $20. Many small businesses don’t accept $50 or $100 bills because they can’t easily provide change. Having smaller notes makes transactions easier.
Salvadoran banks and merchants can be strict about the condition of money. Avoid bringing bills that are torn, wrinkled, taped, or marked up – they may be refused.
” You’ll see coins labeled “centavos de dólar.” These are simply local versions of U.S. cents and carry the same value. They’re used for small change in everyday transactions.
Keeping these tips in mind will make handling money used in El Salvador simple and stress-free, whether you’re traveling, shopping at local markets, or enjoying a meal with friends.
Traveler and sender tips
Whether you visit El Salvador or send money home, here are a few tips to make everything smooth and stress-free.
If you’re traveling:
Although cards are accepted in many larger stores and restaurants, smaller towns, local markets, street food places, and buses often prefer cash.
You don’t need to exchange money into a special currency. When you withdraw from a local ATM, you’ll get USD, and it makes spending very easy.
In San Salvador, Santa Ana, La Libertad, and popular beach areas, cards are more common. But it’s good to carry some cash for small purchases, tips, and local shops.
What if you wish to send money? Most families in El Salvador use U.S. Dollars for day-to-day expenses—buying groceries, paying bills, taking the bus, everything.
So when you send money, sending in USD helps avoid confusion, currency conversions, or extra steps.
This is where BOSS Money comes in handy:
- Send funds quickly without long wait times.
- See the fees upfront so there are no surprises.
- Your family receives the exact amount you intended — in USD, ready to use right away.
It’s simple, reliable, and built for real everyday needs. Because when you’re supporting family back home, every dollar really does matter — and it should arrive safely, clearly, and without stress.
Conclusion
There you have it! Now you know ‘what is El Salvador’s currency.’
El Salvador has two official currencies: the U.S. dollar (USD) and Bitcoin (BTC). However, in everyday life, the dollar dominates.
For anyone visiting the country: bring U.S. dollars and use them confidently. For anyone sending money: send USD via a reliable service such as BOSS Money for the best mix of rates, speed, and transparency. BOSS Money is secure, user-friendly, and built to support senders and recipients between the U.S. and El Salvador effectively.
With the right preparation – dollars in hand and a trusted transfer service – you’ll be ready to take full advantage of everything El Salvador has to offer.
Sources: all third party information obtained from applicable website as of October 30, 2025
- https://www.investopedia.com/terms/forex/s/svc-el-salvador-colon.asp
- https://www.americasquarterly.org/article/in-el-salvador-bitcoins-retreat-left-valuable-lessons/#:~:text=In%20September%202021%2C%20El%20Salvador,those%20tied%20to%20new%20technologies.
- https://elsalvador.travel/destination/el-tunco/en/
- http://everythingelsalvador.com/el-zonte-travel-guide/
- https://www.elibrary.imf.org/display/book/9781616353780/ch007.xml
- https://wits.worldbank.org/CountrySnapshot/en/SLV
- https://www.pewresearch.org/race-and-ethnicity/fact-sheet/us-hispanics-facts-on-salvadoran-origin-latinos/
- https://aulablog.net/2024/09/18/an-invisible-engine-how-immigrants-drive-the-american-economy-the-case-of-salvadorans/#:~:text=El%20Salvador%20is%20one%20of,make%20to%20the%20US%20economy.
- https://coinmarketcap.com/academy/article/30-reward-for-every-el-salvador-adult-who-downloads-government-crypto-wallet
This article is provided for general information purposes only and is not intended to address every aspect of the matters discussed herein. The information in this article is not intended as specific personal advice. The information in this article does not constitute legal, tax, regulatory or other professional advice from IDT Payment Services, Inc. and its affiliates (collectively, “IDT”), and should not be taken or used as such by any individual. IDT makes no representation, warranty or guaranty, whether express or implied, that the content in this article is current, accurate, or complete. You should obtain professional or other substantive advice before taking, or refraining from, any action on the basis of the information in this article.
