El Salvador’s initiative to have Bitcoin as legal tender has met major challenges, such as convincing Salvadorans to start using the currency. However, the government has taken several initiatives to encourage people to use Bitcoin and has recently announced that those who use the Chivo wallet will receive a discount on fuel prices.
Chivo is the official digital wallet used in El Salvador. The wallet will allow users to gain discounts on fuel payments, a great incentive for Salvadorans who adopt Bitcoin as a medium of exchange.
Partnership with Leading Gas Companies
To enable these discount provisions, the Chivo wallet will partner with the leading gas stations in the country. Chivo wallet users will purchase a gallon of fuel at $0.20 lower than the normal price.
El Salvador’s president, Nayib Bukele, tweeted that this initiative is within the government’s roadmap to lower the cost of fuel in the country. For one year, the El Salvador government will absorb additional increases in fuel prices on the global markets.
2. La empresa estatal Chivo negoció con las empresas gasolineras más grandes de nuestro país, para que a partir de mañana, sus estaciones vendan cada galón de combustible $0.20 más barato, con @chivowallet.
Esto borra varios aumentos del precio internacional de los combustibles. pic.twitter.com/V3qG168isV
— Nayib Bukele (@nayibbukele) September 30, 2021
According to Bukele, this move will make gas prices cheaper for consumers and small businesses and strengthen the country’s economy. Furthermore, the benefits of this initiative will also be experienced in different sectors such as public transport, businesses, entrepreneurship and more. Bukele also notes that the move will also lower the transportation costs across the supply chain.
El Salvador Pushing for Bitcoin Adoption
While Bukele did not directly state that this move would boost the adoption of Bitcoin in El Salvador, it will be an incentive for citizens who transact in Bitcoin. The Bitcoin as legal tender law was implemented, many Salvadorans have been hesitant towards adopting it.
Despite opposition, Bukele has been on the front line to ensure that the move becomes a success. After the Chivo wallet was launched, Bukele stated that those who download and use the wallet would receive $30 worth of Bitcoin.
The El Salvador government has also been buying the dip. Last week, the country bought an additional 150 Bitcoins, which brings the country’s total Bitcoin holdings to around 700. On the day that El Salvador adopted Bitcoin as legal tender, prices dipped from highs of $52K to below $45K.
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