El Salvador is looking to promote the adoption of the Chivo Bitcoin wallet issued by the government, and which offers subsidies on petrol purchases of $0.20 per gallon to users who pay using Bitcoin.
President Nayib Bukele of Salvador has stated that citizens can enjoy a $0.20-per-gallon cut in petrol prices each time they pay, using the Chivo Bitcoin wallet, issued by the government.
The president described the news in a tweet as "positive news for the pockets of Salvadorans."
Bukele stressed that there the discount is available for any local person or firm, and they can access the rebate. The president further announced that the discount will cancel "several increases in the global price of fuels" and "minimize transportation costs in supply chains."
Still, some Salvadorans seem doubtful that the discount ultimately benefits the public, for instance, Twitter user Adan 3840 responded by saying:
Still, other citizens were pessimistic of the government's idea to offer the subsidy to only those who pay using Chivo, with another local questioning on Twitter account why the government did provide subsidy on fuel prices at an earlier date.
Alongside the news, President Bukele also disclosed that he has authorized a relief meant to "stabilize" the local price of liquefied gas. The president announced that while the global market had planned a $1.17 increase in the cost of 25-pound cylinders of liquefied gas, Salvadoran citizens will enjoy "a slight reduction" in prices.
Bukele added that the administration will implement the increase for just one year, adding that any cuts in international gas prices will also be effected on to users during the period.
On Sept. 7, El Salvador was the first country to legally adopt BTC as legal tender. Later that month, the Salvadorian president claimed that about a quarter of the citizens were using Chivo less than a month following its rollout.
However, observes have expressed doubts concerning the president's announcements of surging cryptocurrency adoption.
For instance, author and vocal cryptocurrency critic David Gerard asserted that Salvadoran administrators are "feeding Bukele numbers that please him" that "fall apart under the slightest examination."
In his "Attack of the 50 Foot Blockchain" newsletter, Gerard criticized Chivo usage metrics announced by Bukele to assert that the government-supported wallet "would be doing more transactions a day than Visa does worldwide" if Bukele's data were accurate.