El Salvador Introduces Fuel Subsidy When Paying In Bitcoin

Salvadoran President Nayib Bukele has announced that local consumers can cut gasoline prices to $0.20 per gallon if they pay with a government-backed bitcoin wallet Chivo.

In El Salvador, users of the state-owned cryptocurrency wallet Chivo will be given a discount on fuel when paying in bitcoin. This was announced by President Nayib Bukele.

According to him, this measure “negates several increases in world fuel prices.”

“The benefit has no restrictions and can be used by public transport, entrepreneurs, as well as any company or individual. It will also reduce transport costs in supply chains, ”Bukele added.

In the comments, users expressed doubts about the benefits of such a step for society.

“This 20 cents will go from all of us, right? Gas stations will not lose, they will be reimbursed from taxes paid, including those who walk, ” wrote a user under the nickname Adan_3840.

Another commentator noted that if the “discount” is paid by the state operator Chivo, it is taxpayer money.

Some have suggested that this is an attempt to get people to use an application that still malfunctions.

Recall that the law that recognizes bitcoin as legal tender in El Salvador came into force on September 7.

In the middle of the month, Bukele admitted that the introduction of bitcoin payments was faced with technical difficulties, which he promised to solve in the “coming days.”

On October 1, he announced that the number of Chivo app users had reached 2.73 million. Residents in the comments continued to complain about the unreliable operation of the wallet.

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