El Salvador Taps Stablecoins as Cross-Border Payment Option
El Salvador has launched Sivar, a national digital platform that connects citizens, businesses, and government institutions. The platform uses stablecoins to facilitate cross-border payments, with transfers settled on Coinbase's Base network.
The country partnered with Palo Alto-based startup Modveon for the launch of Sivar. Under a five-year agreement, Modveon will operate and expand the platform across El Salvador. Sivar supports cross-border payments from the US to El Salvador, allowing eligible users to send money at a flat fee of $2.
The platform uses Coinbase's infrastructure and settles transfers on Base. This means that US residents can fund their Sivar wallets through supported Coinbase methods, including bank accounts and cards.
El Salvador's adoption of stablecoins for cross-border payments is raising questions about the role of Bitcoin in everyday transactions. While Bitcoin remains part of El Salvador's strategy, its use as a payment option appears to be declining. Modveon CEO Nana Murugesan stated that President Bukele is committed to using 'the fastest, cheapest and most trusted way' of moving money, which is stablecoins.