Salvadoran President Nayib Bukele has announced that local consumers can enjoy a $ 0.20 per gallon cut in gasoline prices when they pay with the government-backed Bitcoin wallet Chivo.

The president described the news as “positive news for the pockets of Salvadorans” and announced the subsidy on September 30th on Twitter. According to a rough translation, Bukele said:

“State-owned Chivo has negotiated with the largest gas station companies in our country to have their gas stations sell $ 0.20 cheaper every gallon of fuel from tomorrow with Chivo wallets.”

Bukele emphasized that the discount is unlimited and any local person or company can access the discount. He added that the discount will “eliminate multiple hikes in international fuel prices” and “reduce transportation costs in supply chains”.

However, some Salvadorans don’t seem convinced that the subsidy will ultimately benefit the public, and Twitter user Adan_3840 replies:

“That 20 cents will come from all of us, right? The petrol station does not lose, so the refund, after it has been paid with the taxes, also goes to those who walk. “

Others were cynical about the government’s decision to only offer the discount to those who pay with chivo, and another Twitter account asked why the government didn’t offer fuel price relief earlier.

In addition to the news, Bukele also announced that he has approved a fund designed to “stabilize” the domestic price of liquefied gas. The president claimed that while the international market had planned a $ 1.17 increase in the price of £ 25 liquefied gas cylinders, Salvadoran locals would experience “a slight reduction” in costs.

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

Related: El Salvador President teases Bitcoin geothermal mining farm

El Salvador became the first country to legally recognize Bitcoin as legal tender on September 7th. Later that month, Bukele claimed that a third of Salvadorans were using chivo less than three weeks after it was first introduced.

Viewers, however, have been skeptical of Bukele’s reports of an increase in crypto adoption, with outspoken crypto critic and author David Gerard claiming that Salvadoran officials “feed Bukele numbers he likes” that “fall apart on the slightest scrutiny” .

In his newsletter, Attack of the 50 Foot Blockchain, Gerard analyzed the Chivo usage metrics reported by Bukele to conclude that the government-backed wallet would “do more transactions per day than Visa globally” if the president’s data would be correct.


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