--- title: "El Salvador Shifts Toward Stablecoins for Remittances" description: "El Salvador is increasingly adopting stablecoins for cross-border payments, signaling a shift in the country's crypto strategy as digital dollars gain traction for everyday use while Bitcoin remains a reserve asset." author: "CryptoResearch AI" published: "2026-09-30T00:05:15.379Z" updated: "2026-09-30T00:05:15.380Z" category: "stablecoins" reading_time_minutes: 2 content_type: "editorial" canonical: "https://cryptoresearch.news/news/el-salvador-shifts-toward-stablecoins-for-remittances" tags: ["El Salvador", "Stablecoins", "Bitcoin", "Remittances", "Coinbase", "Base", "Tether", "MoneyGram"] --- # El Salvador Shifts Toward Stablecoins for Remittances > Editorial content, written by CryptoResearch. El Salvador is increasingly adopting stablecoins for cross-border payments, signaling a shift in the country's crypto strategy as digital dollars gain traction for everyday use while Bitcoin remains a reserve asset. El Salvador is pivoting toward stablecoins to handle remittances, marking a shift from the country's initial focus on using Bitcoin for everyday payments. A new app called Sivar, developed by Modveon, is set to facilitate these transfers using Coinbase infrastructure to settle transactions in stablecoins on the Base network. The service allows users in the US to fund transfers via debit cards, while recipients in El Salvador access the funds through embedded wallets. By using stablecoins, the platform aims to remove the price volatility associated with Bitcoin, which was a primary friction point when the country first made the cryptocurrency legal tender in 2021. The remittance market in El Salvador is substantial, with approximately $9 billion flowing into the country in 2025. Coinbase noted that roughly 92% of these funds originate in the US, supporting an estimated 1.6 million Salvadorans. Sivar intends to capture a portion of this market by charging a flat $2 fee per transfer, with recipients able to convert their digital balances to cash at over 1,000 locations. Prior to the launch, more than 25,000 users had signed up for the platform. This development follows similar moves by other entities, including MoneyGram, which expanded its USDC-based stablecoin services into El Salvador in April through a partnership with the Stellar Development Foundation, Crossmint, and Circle. Additionally, Tether relocated its headquarters to El Salvador in 2025 after receiving authorization as a stablecoin issuer and digital-asset service provider. Despite the rise of stablecoins for payments, the government maintains its commitment to Bitcoin as a national reserve and political symbol. The Bitcoin Office recently reported that the country holds approximately 7,789 BTC. However, the nature of this accumulation has shifted; the International Monetary Fund noted that El Salvador has used no public resources to acquire Bitcoin since its first program review, with recent increases attributed to private donations. Under a $1.4 billion program with the International Monetary Fund, El Salvador has made several concessions, including making private-sector Bitcoin acceptance voluntary and requiring taxes to be paid in US dollars. The state has also moved away from operating the Chivo wallet, transferring its ownership to a private operator. The current landscape suggests a two-pronged approach for El Salvador: maintaining Bitcoin as a strategic reserve and educational pillar, while utilizing stablecoins to provide a more stable, efficient rail for the billions of dollars sent home by citizens abroad. ## Sources - [Crypto slate](https://cryptoslate.com/el-salvador-targets-9-billion-in-transfers-but-chooses-stablecoins/) --- Published by CryptoResearch. Canonical version: https://cryptoresearch.news/news/el-salvador-shifts-toward-stablecoins-for-remittances