El Salvador offers fuel subsidy of $0.20 per liter to locals paying in Bitcoin

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Salvadoran President Nepe Bukele has announced that local consumers can enjoy a $0.20 per liter reduction in gasoline prices when paying with the government-backed bitcoin wallet, Chivo.

Describing the news as “positive news for the pockets of El Salvador,” the president announced the support via Twitter on September 30. According to a rough translation, Bukele advertiser:

“The state-owned Chivo has negotiated with the largest gas station companies in our country so that tomorrow they will start selling every gallon of fuel $0.20 cheaper, with the Chivo wallet.”

Bukele emphasized that there is no limit to the discount and that any local person or business can access the discount. He added that the discount would erase “several increases in international fuel prices” and “reduce transportation costs in supply chains.”

However, some Salvadorans seem unconvinced that the support ultimately benefits the public, with Twitter user Adan_3840 respond:

“These twenty cents will come from all of us, right? The gas station does not lose, there is after-tax refunds even to those on foot.”

Others have mocked the government’s decision to offer the discount only to those who pay with Chivo, with another Twitter account Questioning Why didn’t the administration move to provide relief on fuel prices at an earlier date.

Along with the news, Bukele also revealed that he had authorized the creation of a fund aimed at “stabilizing” the domestic price of LNG. The president emphasized that while the international market planned a $1.17 increase in the price of 25-pound LPG cylinders, local residents in El Salvador would see a “slight reduction” in the cost.

He added that the government will absorb the increase for a period of one year only, noting that any reductions in international gas prices will also be transmitted to consumers during this period.

Related: El Salvador’s president flirts with a geothermal bitcoin mining farm

El Salvador became the first country to legally recognize Bitcoin as a legal currency on September 7. And later that month, Bukele claimed that a third of El Salvador was already using Chivo less than three weeks after its launch.

However, onlookers have expressed skepticism regarding Bukele’s reports of growing crypto adoption, with outspoken crypto critic and author David Gerard asserting that Salvadoran officials are “feeding Bukele numbers to his liking” that are “crumbling under the slightest scrutiny.”

in a 50ft Blockchain Attack In the news release, Gerard analyzed Chivo usage metrics reported by Bukele to conclude that the government-backed wallet would “make more transactions per day than Visa worldwide” if the president’s statements were accurate.