El Salvador payment app Sivar has launched stablecoin transfers over Coinbase's Base network to target the nation's $9 billion remittance market, signaling a pivot toward dollar-backed digital assets for daily transactions.
Developed by Modveon, the app allows US users to fund transfers using debit cards while recipients in El Salvador receive funds in embedded non-custodial wallets, as outlined in a Sept. 29 announcement. The launch comes five years after El Salvador designated Bitcoin as legal tender in 2021 to lower cross-border transfer costs.
Stablecoin Infrastructure Targets $9 Billion Remittance Corridor
Remittances remain a central financial lifeline for El Salvador, with approximately $9 billion flowing into the country in 2025. According to Coinbase, roughly 92% of these funds originated in the US, supporting an estimated 1.6 million Salvadorans.
To capture market share from traditional remittance providers, Sivar charges a flat $2 fee per transfer regardless of transaction size. Coinbase Chief Policy Officer Faryar Shirzad noted that executing transfers entirely in digital dollars enables these economics. Key features of the deployment include:
- Flat Pricing: A $2 flat rate per transfer between verified users settling on Base.
- Cash Off-Ramps: Over 1,000 physical conversion locations across El Salvador.
- Pre-Launch Interest: More than 25,000 Salvadorans registered for the app prior to launch.
- Backend Support: Coinbase supplies fiat onramps, transfer APIs, and settlement infrastructure.
Competing Stablecoin Rails and IMF Constraints
Sivar enters a crowded market for dollar-backed tokens in El Salvador. In April, MoneyGram expanded its USDC service into the country through a partnership with the Stellar Development Foundation, Crossmint, and Circle, extending to its network of almost 500,000 retail locations across more than 200 countries and territories. Additionally, issuer Tether moved its headquarters to El Salvador in 2025 after securing regulatory approval, while integrating USDT with Bitcoin's Lightning Network.
Meanwhile, El Salvador's official Bitcoin program has shifted scope. The Bitcoin Office reported the country holds 7,789 BTC in its Strategic Bitcoin Reserve on its fifth anniversary, alongside educational outreach to 80,000 civil servants and developer programs like CUBO+. However, under a $1.4 billion International Monetary Fund (IMF) program, the government ceased using public funds for Bitcoin purchases, modified legal tender mandates, and transferred majority control of the state-run Chivo wallet to a private operator while institutional treasury builders like MicroStrategy continue corporate BTC acquisitions.
Why It Matters
El Salvador's shift highlights a pragmatic split in state-level crypto adoption. While Bitcoin remains central to national branding, foreign reserves, and sovereign identity, dollar-backed stablecoins are capturing actual transaction volume by eliminating price volatility for working families. If private apps like Sivar successfully reduce average remittance friction down to $2, El Salvador could establish a template for emerging markets where stablecoin rails handle retail commerce while Bitcoin serves strictly as a reserve asset.
