El Salvador Rolls Out State-Backed Stablecoin App with Coinbase

El Salvador has launched a state-backed stablecoin app called Sivar in collaboration with Coinbase. The app, which settles transactions on the Base layer-2 network operated by Coinbase, allows eligible users in the US to send digital dollars to verified recipients for a flat $2 fee.

The platform marks a shift towards stablecoin-based payments five years after El Salvador adopted Bitcoin as legal tender under President Nayib Bukele. The country received nearly $10 billion from abroad last year, making remittances a crucial economic lifeline.

More than 25,000 Salvadorans registered for the app before its official launch, and transfers can be made with a debit card through Coinbase Onramp. Recipients can withdraw cash at over 1,000 locations across El Salvador, with transfer fees remaining constant regardless of the amount sent.