TLl;DR Breakdown
- El Salvador subsidies fuel price for buyers paying Bitcoin.
- The move is to further deepen Bitcoin adoption among Salvadorians.
El Salvador government, towards boosting the adoption of Bitcoin in the country, has subsidized the price of petrol for those paying in Bitcoin via the state-backed Chivo wallet app.
Nayib Bukele, the president, made the announcement in a Twitter post that Salvadorians paying for petrol in Bitcoin would enjoy a $0.20 per gallon reduction in prices when they use Chivo wallet to pay.
“The state company Chivo negotiated with the largest gas station companies in our country, so that starting tomorrow, their stations will sell each gallon of fuel $ 0.20 cheaper, with Chivo wallet,” Bukele tweeted in Spanish.
The president noted that there is no limit to the discount, and both individuals and organizations can access the rebate. According to the president, the $0.20 rebate would erase “several increases in the international price of fuels” and “reduce transportation costs in supply chains.”
Amidst subsidy, El Salvador working on stabilizing fuel price
President Bukele also revealed that he has authorized funds are plowed to ensure that the price of gas is stabilized. The president asserted that while the international market had planned a $1.17 rise in the price of 25-pound cylinders of liquified gas, Salvadoran locals will experience “a slight reduction” in cost.
However, he said the global increase in fuel price would be absorbed by his government for just one year and said if there’s a reduction in prices during that period, it will be passed to locals.
Bukele said that the move will not only alleviate the pockets of households but also that of small businesses, helping to strengthen
the country’s economy and the most vulnerable sectors will also feel the benefit of the economic growth that El Salvador is having.
The Latin American country made history in September to become the first country to make Bitcoin a legal tender, and weeks after, the president has said one-third of locals in the country have embraced the virtual asset three weeks into its launch.
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