> Despite all the theoretical advantage for remittances, adoption for remittances is still very low, with 11% ever using the app for this. An issue that Salvad

> Despite all the theoretical advantage for remittances, adoption for remittances is still very low, with 11% ever using the app for this. An issue that Salvadorans in the U.S. face when they want to fund their Chivo Wallets to send to their family is that they charged a Foreign Transaction Fee by their U.S. banks. This happens because the Chivo card transaction is processed in El Salvador and most Salvadorans in the U.S. don't have debit/credit cards that refund Foreign Transaction fees. Depending on the bank they may be about 3% and they add up for larger transactions. Btw Salvadoran banks don't charge foreign transaction for purchases abroad. So these fees are something we rarely think about, and came as a surprise to many :D Or they would have to take a bus or drive to a Salvadoran consulate in the U.S. to use a US Chivo ATM. The time that would take plus transportation costs wouldnt make it a cheap option either. > It may be in part because using the government app means the remittances are known to the government This seems incorrect. El Salvador has very strict transaction reporting laws. 1. Every remittance is reported in El Salvador. Every one of them. In a very detailed way. To at least three government institutions. Central Bank, Financial Investigation Unit and Tax Office. > and can be taxed as income, 2. Transfers between family members are not considered taxable income according to the Tax Code. It's on the first pages of the Income Tax Law: Article 3, Paragraph 3. > whereas cash goes unreported. El Salvador tracks cash transactions. Even paying the $2.29 water bill in coins requires an ID. Other commerces have a higher reporting thresholds, like +$100/$200 in supermarkets and clothing stores. Many cashiers are trained to ask for an ID even for lower purchases to activate product warranty and loyalty programs.