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El Salvador introduced a fuel subsidy when paying in Bitcoin


When paying for fuel in Bitcoin in El Salvador, users of the state cryptocurrency wallet Chivo will receive a discount. President Nayib Bukele announced this.

“The state-owned company Chivo has held talks with the largest fuel companies in the country so that from tomorrow (October 1) their gas stations will sell each gallon of gasoline for $0.20 cheaper through a crypto wallet,” he wrote on September 30.

Thus, according to him, this measure “negates several increases in world fuel prices.”

The benefit has no restrictions

“The benefit has no restrictions and can be used by public transport, entrepreneurs. As well as any company or individual. It will also reduce transportation costs in supply chains,” Bukele added.

Thus, in the comments, users expressed doubt about the benefits of such a step for society. “That 20 cents will come from all of us, right? The gas stations will not lose, they will be reimbursed from the taxes paid, including those who walk”. Wrote a user under the nickname Adan_3840. Another commentator noted that if the “discount” is paid by the state operator Chivo, then it is taxpayers’ money.

Some have suggested that this is an attempt to get people to use an application that is still malfunctioning.

Official means of payment

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

In the middle of the month, Bukele admitted that the introduction of Bitcoin payments faced technical difficulties, which he promised to solve in the “coming days.”

On October 1, President announced that the number of users of the Chivo application reached 2.73 million. “180 new users (not downloads) every minute. Million-dollar transfers every day,” he added. Residents in the comments continued to complain about the unreliable operation of the wallet.

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