diff --git a/CHANGELOG.md b/CHANGELOG.md
index 8992f81c..89ae41d0 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -16,6 +16,10 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 - An issue where the ASB was unable to use the Monero wallet in case `monero-wallet-rpc` has been restarted.
   In case no wallet is loaded when we try to interact with the `monero-wallet-rpc` daemon, we now load the correct wallet on-demand.
   See issue https://github.com/comit-network/xmr-btc-swap/issues/652.
+- An issue where swap protocol was getting stuck trying to submit the cancel transaction.
+  We were not handling the error when TxCancel submission fails.
+  We also configured the electrum client to retry 5 times in order to help with this problem.
+  See issues: https://github.com/comit-network/xmr-btc-swap/issues/709 https://github.com/comit-network/xmr-btc-swap/issues/688, https://github.com/comit-network/xmr-btc-swap/issues/701.
 
 ## [0.8.1] - 2021-08-16
 
diff --git a/swap/src/bitcoin/wallet.rs b/swap/src/bitcoin/wallet.rs
index b2554e80..4bdc6388 100644
--- a/swap/src/bitcoin/wallet.rs
+++ b/swap/src/bitcoin/wallet.rs
@@ -48,7 +48,10 @@ impl Wallet {
         env_config: env::Config,
         target_block: usize,
     ) -> Result<Self> {
-        let client = bdk::electrum_client::Client::new(electrum_rpc_url.as_str())
+        let config = bdk::electrum_client::ConfigBuilder::default()
+            .retry(5)
+            .build();
+        let client = bdk::electrum_client::Client::from_config(electrum_rpc_url.as_str(), config)
             .context("Failed to initialize Electrum RPC client")?;
 
         let db = bdk::sled::open(wallet_dir)?.open_tree(SLED_TREE_NAME)?;
diff --git a/swap/src/cli/event_loop.rs b/swap/src/cli/event_loop.rs
index 2ed37b26..d8c0d453 100644
--- a/swap/src/cli/event_loop.rs
+++ b/swap/src/cli/event_loop.rs
@@ -54,7 +54,7 @@ impl EventLoop {
     ) -> Result<(Self, EventLoopHandle)> {
         let execution_setup = bmrng::channel_with_timeout(1, Duration::from_secs(60));
         let transfer_proof = bmrng::channel_with_timeout(1, Duration::from_secs(60));
-        let encrypted_signature = bmrng::channel_with_timeout(1, Duration::from_secs(60));
+        let encrypted_signature = bmrng::channel(1);
         let quote = bmrng::channel_with_timeout(1, Duration::from_secs(60));
 
         let event_loop = EventLoop {
@@ -248,7 +248,7 @@ impl EventLoopHandle {
     pub async fn send_encrypted_signature(
         &mut self,
         tx_redeem_encsig: EncryptedSignature,
-    ) -> Result<()> {
+    ) -> Result<(), bmrng::error::RequestError<EncryptedSignature>> {
         Ok(self
             .encrypted_signature
             .send_receive(tx_redeem_encsig)
diff --git a/swap/src/protocol/alice/swap.rs b/swap/src/protocol/alice/swap.rs
index b09658f0..c3808103 100644
--- a/swap/src/protocol/alice/swap.rs
+++ b/swap/src/protocol/alice/swap.rs
@@ -195,7 +195,8 @@ where
             select! {
                 biased; // make sure the cancel timelock expiry future is polled first
 
-                _ = tx_lock_status.wait_until_confirmed_with(state3.cancel_timelock) => {
+                result = tx_lock_status.wait_until_confirmed_with(state3.cancel_timelock) => {
+                    let _ = result?;
                     AliceState::CancelTimelockExpired {
                         monero_wallet_restore_blockheight,
                         transfer_proof,
diff --git a/swap/src/protocol/bob/swap.rs b/swap/src/protocol/bob/swap.rs
index 0ebab92b..45c5a3b1 100644
--- a/swap/src/protocol/bob/swap.rs
+++ b/swap/src/protocol/bob/swap.rs
@@ -128,7 +128,7 @@ async fn next_state(
 
                         let state4 = state3.cancel();
                         BobState::CancelTimelockExpired(state4)
-                    }
+                    },
                 }
             } else {
                 let state4 = state3.cancel();
@@ -159,7 +159,8 @@ async fn next_state(
                             },
                         }
                     }
-                    _ = tx_lock_status.wait_until_confirmed_with(state.cancel_timelock) => {
+                    result = tx_lock_status.wait_until_confirmed_with(state.cancel_timelock) => {
+                        let _ = result?;
                         BobState::CancelTimelockExpired(state.cancel())
                     }
                 }
@@ -175,10 +176,15 @@ async fn next_state(
                 // Bob sends Alice his key
 
                 select! {
-                    _ = event_loop_handle.send_encrypted_signature(state.tx_redeem_encsig()) => {
-                        BobState::EncSigSent(state)
+                    result = event_loop_handle.send_encrypted_signature(state.tx_redeem_encsig()) => {
+                        match result {
+                            Ok(_) => BobState::EncSigSent(state),
+                            Err(bmrng::error::RequestError::RecvError | bmrng::error::RequestError::SendError(_)) => bail!("Failed to communicate encrypted signature through event loop channel"),
+                            Err(bmrng::error::RequestError::RecvTimeoutError) => unreachable!("We construct the channel with no timeout"),
+                        }
                     },
-                    _ = tx_lock_status.wait_until_confirmed_with(state.cancel_timelock) => {
+                    result = tx_lock_status.wait_until_confirmed_with(state.cancel_timelock) => {
+                        let _ = result?;
                         BobState::CancelTimelockExpired(state.cancel())
                     }
                 }
@@ -194,7 +200,8 @@ async fn next_state(
                     state5 = state.watch_for_redeem_btc(bitcoin_wallet) => {
                         BobState::BtcRedeemed(state5?)
                     },
-                    _ = tx_lock_status.wait_until_confirmed_with(state.cancel_timelock) => {
+                    result = tx_lock_status.wait_until_confirmed_with(state.cancel_timelock) => {
+                        let _ = result?;
                         BobState::CancelTimelockExpired(state.cancel())
                     }
                 }