El Salvador introduces fuel subsidy of $0.20 per gallon to locals who pay in BTC

bitcoin usd banknotes one hundred dollar virtual money investment cryptocurrency business scaled

Salvadoran president Nayib Bukele has announced that local consumers can enjoy a $0.20 per gallon reduction in petrol prices when paying using the government-backed Bitcoin wallet, Chivo.

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, 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.”

Bukele emphasized that there is no limit to the discount and that any local person or company can access the rebate. He added that the discount will erase “several increases in the international price of fuels” and “reduce transportation costs in supply chains.” 

However, some Salvadorans appear unconvinced that the subsidy ultimately benefits the public, with Twitter user Adan_3840 responding:

“Those 20 cents will come from all of us, right? The gas station does not lose, there goes the refund after paid with the taxes of even those who walk on foot.”

Others were cynical of the government’s decision to offer the discount to only those who pay using Chivo, with another Twitter account questioning why the administration did not move to offer relief on fuel prices at an earlier date.

Alongside the news, Bukele also revealed that he has authorized a fund intended to “stabilize” the domestic price of liquified gas. The president asserted that while the international market had planned a $1.17 rise in the price of 25-pound cylinders of liquified gas, Salvadoran locals will experience “a slight reduction” in cost.

He added that the government will absorb the increase for one year only, noting any reductions in global gas prices will also be passed on to consumers during the period.

Related: El Salvador president teases geothermal Bitcoin mining farm

El Salvador became the first country to legally recognize Bitcoin as legal tender on Sept. 7. Later that month, 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.”

In his Attack of the 50 Foot Blockchain newsletter, 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.

Source Link

Ronnie Huss

Ronnie Huss

Leave a Reply

Your email address will not be published. Required fields are marked *

Share:

Share on telegram
Share on facebook
Share on twitter
Share on linkedin
Share on whatsapp

Related Posts

bitcoin
Bitcoin (BTC) $ 65,106.44
ethereum
Ethereum (ETH) $ 3,166.44
tether
Tether (USDT) $ 1.00
bnb
BNB (BNB) $ 571.46
solana
Solana (SOL) $ 150.67
usd-coin
USDC (USDC) $ 0.999802
staked-ether
Lido Staked Ether (STETH) $ 3,162.33
xrp
XRP (XRP) $ 0.526720
dogecoin
Dogecoin (DOGE) $ 0.162860
the-open-network
Toncoin (TON) $ 6.20
cardano
Cardano (ADA) $ 0.505808
shiba-inu
Shiba Inu (SHIB) $ 0.000027
avalanche-2
Avalanche (AVAX) $ 38.17
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 65,250.48
bitcoin-cash
Bitcoin Cash (BCH) $ 511.08
polkadot
Polkadot (DOT) $ 7.20
tron
TRON (TRX) $ 0.111036
chainlink
Chainlink (LINK) $ 14.92
internet-computer
Internet Computer (ICP) $ 15.86
matic-network
Polygon (MATIC) $ 0.734314
near
NEAR Protocol (NEAR) $ 6.32
litecoin
Litecoin (LTC) $ 84.88
uniswap
Uniswap (UNI) $ 7.84
leo-token
LEO Token (LEO) $ 5.75
dai
Dai (DAI) $ 1.00
aptos
Aptos (APT) $ 10.10
ethereum-classic
Ethereum Classic (ETC) $ 27.99
blockstack
Stacks (STX) $ 2.79
mantle
Mantle (MNT) $ 1.23
filecoin
Filecoin (FIL) $ 6.64
first-digital-usd
First Digital USD (FDUSD) $ 0.999653
crypto-com-chain
Cronos (CRO) $ 0.131391
render-token
Render (RNDR) $ 9.12
cosmos
Cosmos Hub (ATOM) $ 8.63
stellar
Stellar (XLM) $ 0.115585
okb
OKB (OKB) $ 55.59
arbitrum
Arbitrum (ARB) $ 1.22
immutable-x
Immutable (IMX) $ 2.20
renzo-restaked-eth
Renzo Restaked ETH (EZETH) $ 3,197.46
bittensor
Bittensor (TAO) $ 477.28
hedera-hashgraph
Hedera (HBAR) $ 0.088078
dogwifcoin
dogwifhat (WIF) $ 3.09
vechain
VeChain (VET) $ 0.042180
maker
Maker (MKR) $ 3,124.64
kaspa
Kaspa (KAS) $ 0.120950
the-graph
The Graph (GRT) $ 0.289604
injective-protocol
Injective (INJ) $ 29.30
fetch-ai
Fetch.ai (FET) $ 2.52
optimism
Optimism (OP) $ 2.50
pepe
Pepe (PEPE) $ 0.000006