El Salvador Shifts to Stablecoins
El Salvador moves from bitcoin to stablecoins as payments decline.
In brief
El Salvador moves from bitcoin to stablecoins as payments decline. El Salvador's government is shifting to stablecoins for remittances after bitcoin usage dropped among its citizens. Originally reported by Pymnts.
El Salvador shifts to stablecoins
El Salvador's government is moving from bitcoin to stablecoins for remittances and payments.
Bukele administration partners with Modveon
Nayib Bukele's government is working with software startup Modveon to develop Sivar, a government-backed platform for stablecoins.
Sivar platform features
Sivar verifies users via government ID, allows sending money, posting content, live discussions, and voting in local elections.
Stablecoin adoption in El Salvador
As of 2024, 92% of Salvadorans said they had not used bitcoin, and only 1.75% of remittances went through crypto wallets.
Sivar's role in financial infrastructure
Stablecoins are becoming part of financial infrastructure without displacing traditional payment systems.
What happens next
El Salvador will test Sivar before expanding to other markets, as Modveon focuses on Central American use cases first.
What it means
El Salvador's government is shifting to stablecoins for remittances after bitcoin usage dropped among its citizens.
