El Salvador Introduces $2 Remittance App via Coinbase-Backed Modveon

El Salvador's government has launched Sivar, a national remittance app that allows users to send money to El Salvador with a flat $2 fee. The app was built by Modveon, a Palo Alto-based company backed by Coinbase, under a five-year deal with the Agencia Administradora de Fondos Bitcoin (AAB), a Salvadoran public institution responsible for managing the country's bitcoin funds.

The app uses stablecoins on the Base blockchain to settle transfers from the US. Senders fund transactions through Coinbase Onramp, and recipients can withdraw cash at over 1,000 locations across El Salvador. The government aims to reduce remittance fees, which currently account for a significant portion of the $9 billion sent to El Salvador annually.

Modveon has raised $10 million in funding from investors including Coinbase Ventures and Firebolt Ventures. Faryar Shirzad, Coinbase's chief policy officer, noted that 'Salvadorans send billions of dollars home every year, and too much of it disappears into fees.'