App Uses Coinbase Rails for Low-Cost Digital Dollar Transfers

El Salvador is rolling out Sivar, a new app built by Modveon that lets eligible U.S. senders send money to verified recipients in the Central American nation at a fixed $2 fee per transaction, regardless of the amount. The platform, which launched today, relies on Coinbase’s payments infrastructure for wallets, transfer APIs and settlement in dollar-pegged stablecoins on the Base network, Coinbase’s Ethereum layer-2 solution.

Users receive non-custodial wallets inside the app and can withdraw cash at more than 1,000 locations across El Salvador. More than 25,000 Salvadorans had already registered for the service ahead of the official launch. Coinbase Chief Policy Officer Faryar Shirzad noted that the flat-fee structure works because “the money moves entirely in digital dollars,” enabling low-cost peer-to-peer transfers without percentage-based charges.

Sivar Reflects El Salvador’s Evolving Crypto Policy

El Salvador has moved away from the heavy Bitcoin focus of its 2021 legal-tender initiative, where adoption for everyday payments fell short of expectations. The government amended its Bitcoin Law in January 2025 under an IMF loan program to make merchant acceptance voluntary and prevent tax payments in Bitcoin. The country still holds a large Bitcoin reserve, with recent purchases continuing alongside plans for stablecoin infrastructure.

Sivar represents a practical step toward dollar-backed stablecoins for remittances and payments. President Nayib Bukele and the government of El Salvador partnered with Modveon to launch the trusted community and payments app, as described by Vice Minister of Foreign Affairs Adriana Mira, who called it “a step toward a more personal digital experience designed to meet the needs of Salvadorans, wherever they may be.”

Official Bitcoin Office Issues Denials on State Involvement

El Salvador’s Bitcoin Office quickly addressed speculation, stating that the government is not backing or operating Sivar and has no plans to launch or run any cryptocurrency or stablecoin wallet. The office noted that state involvement in the earlier Chivo Wallet ended after it was sold to private operators, and characterized claims of government support for Sivar as false.

The denial comes amid development of Sivar on Coinbase’s Base network, which the country previously planned to leverage for government-backed stablecoin holdings and transfers. Industry coverage had suggested official alignment, but the Bitcoin Office clarified that any such involvement ended with the Chivo Wallet transition.

Stablecoins Offer Remittance Benefits in El Salvador

The shift to dollar-pegged stablecoins addresses limitations seen with Bitcoin adoption. Transactions settle quickly on Base with minimal fees, and the $2 flat rate undercuts traditional remittance costs that often reach 6-8 percent for similar corridors. El Salvador still maintains substantial Bitcoin holdings, recently acquiring additional units to reach levels valued near $700 million, but the focus for consumer-facing payments has moved toward stablecoins for reliability and everyday usability.

Coinbase’s broader strategy includes scaling stablecoin and payments infrastructure, with Sivar marking a country-scale application of its tech. The company continues expanding partnerships, including with Citi for business payment rails, while prioritizing stablecoins in its 2026 priorities. The app’s launch aligns with these efforts, providing verified identity, community features and digital-dollar transfers in a single platform.