El Salvador Issues Discount On Fuel For Chivo Wallet Users

El Salvador Issues Discount On Fuel For Chivo Wallet Users

El Salvador has been adamant in its plans to implement the Bitcoin law. The government has now announced that it will be offering discounts to those who use the Chivo wallet to purchase fuel.

The discount in question has been set at $0.20 per gallon of fuel, which is meant to motivate people to use the government-backed Bitcoin wallet as a mode of payment.

The president of El Salvador, Nayib Bukele, has been at the forefront of ensuring El Salvadorans accept the new Bitcoin law. Bukele stated that the new announcement is good news for people in the country.

“The state company Chivo negotiated with the largest gas station companies in our country so that starting tomorrow, their stations will sell each gallon of fuel at $0.20 cheaper, with the Chivo wallet,” a translation of Bukele’s tweet read.

Furthermore, Bukele added that there would be no limit to the discount that a person can receive. Hence, the more gallons an individual purchases with the Chivo wallet, the more a person will save.

Bukele also stated that the discount realized with the Chivo wallet will help deal with the many issues that have been created by the rising prices of fuel globally. It will also benefit businesses, as it will lower the transportation costs affiliated with the supply chain process.

Bitcoin Law Still Faces Opposition

Despite the efforts that Bukele has put forward to ensure that the use of Bitcoin in the country goes as smoothly as possible, the law still faces opposition from many people.

One Twitter user who responded to Bukele’s post stated that the discount given to users will still be paid by tax users, even those that do not own cars.

Other arguments against the discount called out Bukele for only offering it to Chivo wallet users. Another went ahead to ask why the government failed to offer a subsidy on fuel prices earlier, given that it has been a prevalent issue in the country.

Besides lowering fuel costs, Bukele has also stated that his administration will also lower the cost of liquefied gas to stabilize domestic prices. He stated that the cost of liquefied gas in the international market is planned to increase by $1.17, but citizens of El Salvador will see a reduction.

The government will also shield citizens from the increasing gas prices for a year, after which they will start paying the normal prices. He also added that any reductions in global prices during this period would be translated to citizens. 

El Salvador made history as the first country to adopt Bitcoin as legal tender. Currently, the cryptocurrency is being used alongside the U.S. dollar to conduct transactions.

In an earlier statement, Bukele had stated that a third of Salvadorans were already using the Chivo wallet, which gave $30 worth of Bitcoin to those who download and use it. 

However, various critics of this law have stated that Bukele’s numbers showing the growing Bitcoin adoption are not true but have been cooked by his administration. Critics say this is being done to please him and portray that the law is not falling apart as had been predicted.

Bukele also recently announced about the success of the “Volcanode” mining rig. This newly-built facility uses volcanic energy to mine Bitcoin and Bukele took to Twitter stating that it had mined its first Bitcoin estimated to be worth around $470.

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