El Salvador subsidizes petrol for the sake of bitcoin

The Salvadorian government is giving maximum backing to the new national currency – bitcoin. It’s newly offering a fuel discount.

At the start of this September, the Central American country introduced bitcoin as official tender, with it came an electronic wallet, the Chivo. 

Electronic wallet gains strength

At the end of the same month, El Salvadorian President Nayib Bukele made a fresh announcement over Twitter. Following negotiations with the biggest filling station networks, everyone paying with bitcoin using the Chivo wallet would get a discount of 0.20 USD per gallon of fuel. This scheme has now been running since the start of October.

President Bukele also emphasized that the discount is not restricted in any way. Every citizen and every company can benefit. Meanwhile, three weeks after being introduced, the Chivo is used by something like a third of Salvadorians.

Not everyone is happyHowever, critical voices have been raised. Some are worried about how the new measure is being financed. Others wonder why not all Salvadorians are enjoying such a discount. What is clear, however, is that this measure is designed to support maximum use of the new national tender – bitcoin.

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