EL SALVADOR TURNS TO STABLECOINS FOR DIGITAL PAYMENTS FIVE YEARS AFTER MAKING BITCOIN LEGAL TENDER The Bukele government is reportedly working with Modveon on a government-backed app that would allow Salvadorans to hold and send dollar-backed stablecoins, including remittances, using Coinbase’s Base network. The move marks a shift in El Salvador’s digital payments strategy after Bitcoin failed to gain widespread use for everyday transactions. In 2025, El Salvador made private-sector Bitcoin acceptance voluntary and ended Bitcoin tax payments as part of its IMF agreement. Operational control of the government-backed Chivo wallet was also transferred to a private operator. Bitcoin has remained part of the country’s treasury strategy, but its use for remittances remains limited. Central bank data shows crypto wallets handled just $41.1 million of $5.92 billion in family remittances during the first seven months of 2026, roughly 0.7%. The specific stablecoin has not been disclosed, and there is not yet public confirmation that the new app is live.