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El Salvador Incentivizes Bitcoin Payments for Petrol

UTC by Oluwapelumi Adejumo · 3 min read
El Salvador Incentivizes Bitcoin Payments for Petrol
Photo: Unsplash

While some locals have praised President Bukele’s new crypto adoption drive, others have raised questions on why the discount is just coming and why it is only through the “Chivo wallet.”

El Salvador is not relenting in its push to bolster crypto adoption and use within its jurisdiction as the country has added new incentives for the use of its Chivo wallet. According to available information, whoever uses the government-backed crypto wallet to pay for petrol in El Salvador would enjoy a $0.20 discount per gallon.

The President of the Central American country, Nayib Bukele, announced in a tweet post that local consumers can now enjoy a mini discount of $0.20 on every gallon of petrol purchase using the country’s officialized Bitcoin wallet, Chivo.

He continued that Chivo and the largest gas station had entered into a new agreement that would help drive the adoption of the flagship digital asset.

Per Bukele’s tweet:

“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.”

This move, the president believes, would be able to help consumers of petroleum products in the country mitigate an “increase in the international price of fuels.” He added that the discount can also help to “reduce transportation costs in supply chains.”

Another interesting addition to the news was the revelation that the country was going to look to stabilize the price of liquefied gas for its citizens. According to Bukele, regardless of whatever changes happen on the international market, Salvadorans would be able to enjoy a “slight reduction” in the price. This move, however, will be tenable for only one year.

Citizens Question Timing of Petrol Discount in El Salvador

While some locals have praised President Bukele’s new crypto adoption drive, others have raised questions on why the discount is just coming and why it is only through the “Chivo wallet.”

In one of the responses to the well publicized tweet, a Twitter user believes that the incentive will not benefit the general public because “The gas station does not lose, there goes the refund after paid with the taxes of even those who walk on foot.”

Another user wondered why the government chose to just introduce the reduction in fuel prices and why the reduction would be available to those using Chivo alone.

If you recall, we reported that El Salvador’s Bitcoin adoption has seen some level of hostilities and protest from citizens who believe the volatile nature of the coin could come to bite the country in the nearest future.

However, President Bukele has insisted that the adoption and use of the asset is rising and has even predicted that Chivo “would be doing more transactions a day than Visa does worldwide.”

Bitcoin News, Cryptocurrency news, News
Oluwapelumi Adejumo

Oluwapelumi is a believer in the transformative power Bitcoin and Blockchain industry holds. He is interested in sharing knowledge and ideas. When he is not writing, he is looking to meet new people and trying out new things.

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