In a unique move to promote the adoption of Bitcoin, the Central American nation, El Salvador has introduced a rather bizarre subsidy. El Salvador’s government has promised buyers a $0.20 per gallon discount when they purchase petrol using Bitcoins.
President Nayib Bukele who has been at the forefront of making Bitcoin a legal tender in the country has said users can buy Petrol at discounted prices when they choose the state-operated Bitcoin Chivo wallet to pay.
Taking to Twitter, the President said that it is very positive news that will take the burden off the pockets of common El Salvadorans. “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,” he explained.
Pushing For Mainstream Bitcoin Adoption
Bukele is confident that the new discounts will be gaining popularity and also help accentuate the adoption of Bitcoin. He also said that the discounts will bring relief to the people and significantly reduce the “ transportation costs in supply chains.”
“Those 20 cents will come from all of us, right? The gas station does not lose, there goes the refund after paying with the taxes of even those who walk on foot,” he asserted.
The opposition has lashed out at the President’s decision and said that the Bitcoin Petrol discount is simply whimsical and a desperate attempt to make the leading cryptocurrency popular in the country.
While El Salvador became the first country in the world to legalize Bitcoins and make them a legal tender, the country is battling adoption and technical challenges. The state-operated Bitcoin Chivo Wallet has been reported to have many bugs. It has been suspended many times for maintenance already. In addition, there are still many who have no idea of how Bitcoin and cryptocurrencies work.