Salvadoran Government Abandons Bitcoin, Turns to Stablecoins for Remittances
Five years after El Salvador made Bitcoin legal tender, President Nayib Bukele's administration is shifting its focus to stablecoins. The government is building a new app with Modveon that will allow Salvadorans to send and hold digital dollars using Coinbase's Base network.
The move marks a reversal for the Bukele administration, which had previously touted Bitcoin as a new form of everyday money. The decision to adopt dollar-backed stablecoins is seen as a pragmatic response to the lack of adoption of Bitcoin payments in the country.
Remittances are a significant source of income for many Salvadorans living abroad, and the government hopes that the new app will make it easier for them to send and receive money. The Base network will be used to facilitate these transactions, providing a secure and reliable platform for digital dollars.