El Salvador Abandons Bitcoin for Stablecoins in Remittance App Launch
El Salvador has launched an app called Sivar that allows citizens to send and hold digital dollars using stablecoins, not Bitcoin. The app was developed by Modveon, a Palo Alto startup, and runs on Base, a blockchain network built by Coinbase.
The move marks a shift away from El Salvador's earlier adoption of Bitcoin as legal tender, which never gained widespread use among citizens. In 2024, a University of Central America survey found that only around 8% of Salvadorans had used Bitcoin in the past year.
El Salvador received nearly $10 billion in remittances in 2025, with about 92% coming from the US. The Sivar app charges US users a flat $2 per transfer home, but some studies have found that stablecoin remittances can be no cheaper than traditional banking methods.
Nana Murugesan, CEO of Modveon, said in an interview that President Nayib Bukele is committed to using stablecoins for money movement due to their speed and cost-effectiveness. However, the country's national treasury still holds Bitcoin as a store of value.