El Salvador’s state-owned digital wallet company “Chivo” will be granting citizens a discount on fuel payments. This provides greater incentives for citizens to use Bitcoin as a medium of exchange.
Chivo Partners With Major Gas Companies
Nayib Bukele – President of El Salvador – announced the new benefit yesterday over Twitter. The reveal was part of a longer thread on the nation’s efforts to reduce the cost of fuel in the country.
The government will be absorbing further increases in the cost of fuel on international markets for one year. According to Bukele, this will limit gas prices in the country for consumers and small businesses and strengthen the economy.
However, Chivo wallet will also be playing a role in reducing gas prices. In partnership with the largest gas stations in the country, the company will make gas $0.20 cheaper on the gallon for users of its wallet. The president says that this will help erase several increases in international fuel costs.
The benefit is all-encompassing, applicable to public transport, entrepreneurs, people, and businesses of El Salvador. Bukele believes that this provides another direct relief to El Salvadorans while reducing transportation costs for supply chains.
Another Step Towards Bitcoin Adoption
While not directly stated by the president, the Chivo partnership also provides a financial incentive for citizens to transact in Bitcoin. Ever since El Salvador’s legal tender law was passed in June, many in the country have rejected its adoption.
Despite protests from citizens, media, and bankers alike, Bukele has been headstrong in standardizing Bitcoin across the nation. When the Chivo wallet launched, he freely provided $30 worth of Bitcoin to citizens as an incentive to use it.
Furthermore, the government appears to be stocking up Bitcoin at every available opportunity. Just last week, it purchased another round of 150 Bitcoins, making its total Bitcoin holdings at least 700.