Key Takeaways
- ONBTC declared El Salvador has no plans for crypto wallets after selling Chivo Wallet to private owners.
- Coinbase Layer 2 Base network powers a new $2 remittance app, challenging claims of a stablecoin pivot.
- El Salvador bought 30 BTC in 30 days, expanding its national reserves to 7,790 BTC despite skepticism.
Government Denies Stablecoin Pivot
El Salvador has dismissed a Bloomberg report that the country is turning to stablecoins nearly five years after it became the first nation to declare bitcoin legal tender. In a statement shared via X, El Salvador’s National Bitcoin Office (ONBTC) clarified the government’s current stance, declaring that it “has no plans to launch or operate any bitcoin, crypto or stablecoin wallet.”
“With the recent sale of Chivo Wallet to a private operator, all state involvement has officially ended,” ONBTC stated.
The pushback from ONBTC comes directly on the heels of a report alleging that El Salvador is quietly pivoting away from its flagship cryptocurrency initiative. Critics and industry analysts argue that bitcoin’s failure to achieve widespread daily adoption, combined with the country’s existing dollarized economy and the expanding footprint of stablecoin giant Tether, has forced the government to rethink its strategy in favor of fiat-backed digital assets.
In addition, the state-managed Chivo Wallet faced ongoing challenges over the years, including technical issues, adoption friction, and public skepticism regarding state intervention in financial digital infrastructure. By selling Chivo Wallet to a private operator, President Nayib Bukele’s administration stepped back from managing financial software directly, opting instead to allow private enterprise to run payment infrastructure in the country.
Adding fuel to the speculation, Bukele’s administration has rolled out a remittance app operating on Base, Coinbase’s Layer-2 Ethereum blockchain network, which settles transactions in stablecoins. Official statements highlight that the platform offers identity-verified accounts, institutional access, and a low-cost corridor allowing U.S. residents to send funds to El Salvador for a flat $2 fee regardless of the transfer size.
The government’s pushback comes weeks after President Nayib Bukele denied reports that El Salvador was ceding control of its strategic bitcoin reserve to a private operator. Bukele insisted that only Chivo Wallet shares were transferred to a private company, not the nation’s bitcoin holdings.
Despite the controversy, El Salvador shows no signs of slowing its accumulation strategy. Latest data show that the government acquired another 30 bitcoin in the last 30 days, bringing the country’s sovereign holdings to 7,790 bitcoin—over $652 million worth at bitcoin’s recent price below $84,000.
