- El Salvador has announced $0.20 of subsidy per gallon of petrol if residents pay in Bitcoin.
- The Central American country’s Bitcoin holdings are now worth more than $35 million.
- In less than a month, the government’s Chivo wallet recorded 3 million active users.
To further boost the adoption of the government-issued Bitcoin wallet Chivo, El Salvador is now looking to offer discounts on petrol purchases of $0.20 per gallon using BTC.
At the time of Chivo’s launch, the government gave out $30 worth of Bitcoin to its adult citizens that downloaded the Bitcoin app and got verified. In less than a month, the wallet has gained 3,000,000 active users, representing 46% of the country’s population, to become the most popular app in El Salvador.
Now, President Nayib Bukele announced on Twitter that they have “negotiated with the largest gas station companies in our country,” to sell each gallon of fuel $ 0.20 cheaper on their stations to those paying with Chivo wallet.
No Limit on Discounts
Bukele further explained that there is no limit on this discount and that any local person or company can have access to it.
The discount will erase “several increases in the international price of fuels” and “reduce transportation costs in supply chains.,” said Bukele.
Besides offering a subsidy on petrol prices, Bukele also said that he has authorized a fund to “stabilize” the domestic price of liquified gas. While the international market is planning a $1.17 rise in the price of 25-pound cylinders of liquified gas, Salvadorans will see “a slight reduction” in cost, said the President.
However, the government will only absorb the increase in prices for a year, Bukele added. He also promised that any reduction in global gas prices during this period will be passed on to the consumers.
El Salvador & Bitcoin
Earlier last month, El Salvador became the world’s first nation to adopt Bitcoin as legal tender alongside the USD. It also holds 700 Bitcoin to facilitate conversions between BTC and USD.
The government’s Bitcoin holdings are currently worth more than $35 million, up from about $31 million on Sept. 20 which was the last time El Salvador purchased Bitcoin on a dip.
This month, the country also mined its first Bitcoin using volcano-powered energy. El Salvador is home to 20 “potentially active” volcanoes, and is literally dubbed “land of the volcanoes.” Geothermal energy accounts for nearly a fourth of its domestic energy production, according to official data.