El Salvador is looking to bolster the adoption of its government-issued Chivo Bitcoin wallet by offering a subsidy on petrol purchases of $0.20 per gallon to consumers who pay using bitcoin. El Salvador had earlier made a historic decision by announcing bitcoin as an optional legal tender in the Central American country. El Salvador is the only country in the world that accepts bitcoin as a legal tender.
El Salvador’s president announces subsidy on fuel.
Describing the news as “positive news for the pockets of Salvadorans,” the president announced the subsidy via Twitter on Sept. 30. According to a rough translation, Nayib Bukele stated: “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 $ 0.20 cheaper, with Chivo wallet.” He further emphasized that there is no limit to the discount and that any local person or company can access the rebate. The president also noted that the discount will erase “several increases in the international price of fuels” and “reduce transportation costs in supply chains.”
Financial regulators and experts continue to look at El Salvador with skepticism.
El Salvador became the first country to recognize Bitcoin as legal tender on Sept. 7 legally. As reported earlier, Bukele claimed that one-third of Salvadorans were already using Chivo less than three weeks after its launch. However, onlookers have expressed skepticism regarding Bukele’s reports of surging crypto adoption, with outspoken crypto critic and author David Gerard asserting that Salvadoran officials are “feeding Bukele numbers that please him” that “fall apart under the slightest examination.” Gerard analyzed Chivo usage metrics reported by Bukele to conclude that the government-backed wallet “would be doing more transactions a day than Visa does worldwide” if the President’s data were accurate.