El Salvador encourages the use of Bitcoin by subsidizing the cost of fuel

El Salvador shows no signs of slowing in making Bitcoin the country's main legal tender. The latest move is to offer discounts on fuel purchases made through the government's Chivo wallet.

Gas subsidy for Bitcoin users

In an effort to increase the number of bitcoin users in the country, El Salvador is offering $ 0,20 on all fuel purchases. President Nayib Bukele revealed on Twitter that “state company Chivo has been negotiating with the largest gas station companies in our country, so starting tomorrow, their stations will sell every gallon of fuel in less than $ 0,20. ".

In order for citizens to take advantage of the subsidy, gasoline purchases must be made through the state's Chivo app. The President then added that the discounts have no limits and can be used by all categories of citizens including legal entities. President Bukele says the move "represents another direct relief to Salvadorans' pockets" and lower transportation costs in supply chains.

El Salvador was plagued by rising fuel prices and in an effort to cushion the effects of skyrocketing prices, the president announced that he had authorized a fund to stabilize the price of liquefied gas. The fund goes into effect immediately, causing local prices to fall in the face of rising international prices.

"This will not only ease the pocket of families, but also that of small businesses," Bukele says. The government plans to carry out the palliative measures for only one year and, if reductions occur, they will be reflected in the price of LPG cylinders.

The critics are in revolt

The move to offer fuel subsidies to citizens using the Chivo app failed for some citizens. Critics suggest that the $ 0,20 will still be paid by citizens through taxes as gas stations will suffer no losses.

Others are more critical of the government's decision to limit discounts to Chivo app users only. The government has said it will not force citizens to use Bitcoin, but some are interpreting the move as alienating non-Chivo users from participating in the subsidy. The timing of the subsidy also raised eyebrows as critics asked why the government did not declare the discount prior to Bitcoin's adoption as legal tender.

Almost a month after its adoption, Bukele says a third of the country's population has started using the Chivo app. The government had previously given $ 30 in Bitcoin to citizens after downloading the Chivo app. But those interested can also invest in bitcoin through Bitcoin Revolution.

And what do you think of this new initiative by the Salvadoran president? Wouldn't it be nice if such a thing were also done in our country? Let us know what you think in the comments section below.