El Salvador introduces fuel subsidy when paying in bitcoin

October 16, 2021

El Salvador introduces fuel subsidy when paying in bitcoin

In El Salvador, users of the state cryptocurrency wallet Chivo will be given a fuel discount when paying in bitcoin. This was announced by President Nayib Bukele.

Los hogares que ya recibían el subsidio del gas, lo seguirán recibiendo de la misma manera, pero también serán beneficiados con el fondo de estabilización, ya que sus cilindros subsidiados tampoco subirán de precio en todo un año y más bien si percibirán algunas bajas.

According to him, the measure "negates several increases in global fuel prices".

"The concession has no limit and can be used by public transport, entrepreneurs and any company or individual. It will also reduce transport costs in supply chains," Bukele added.

In the comments, users expressed doubts about the benefit of such a move to the public.

"That 20 cents will go from all of us, right? The petrol stations won't lose, they will be reimbursed from the taxes paid, including those who walk," wrote a user under the nickname Adan_3840.

Another commenter pointed out that if the "rebate" is paid by the state-owned operator Chivo, then it is taxpayers' money.

Some have suggested that this is an attempt to get people to use the app, which is still running with glitches.

Recall that the law recognising the first cryptocurrency as an official means of payment in El Salvador came into force on 7 September.

In the middle of the month, Buquelet admitted that the implementation of bitcoin payments had encountered technical difficulties, which he promised to solve in the "coming days".

On 1 October, he announced that the number of users of the Chivo app had reached 2.73 million. Residents continued to complain in comments about the unreliability of the wallet.

Like any investment, it may be a good idea to start small to learn the mechanics of buying cryptocurrencies. Coinbase Pro exchanges comparison.

About the author

Hi there, my name is Zalman Weinberg. I'm enthusiast with over 7 years of experience in cryptocurrencies and blockchain. Professional Trader providing Blockchain solutions to Startups and Enterprises. Expert in all cryptocurrency exchange APIs (BitMEX, Bittrex, Binance, Bitfinex, Kraken, Poloniex, Gdax etc.). I have also worked with multiple Forex broker APIs.

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