El Salvador is offering a fuel subsidy of $0.20 per gallon to Salvadorians who pay in BTC.  This is being done to encourage the adoption of the government-issued Chivo Bitcoin Wallet by providing discounts on petrol purchases to consumers who pay by making use of BTC.

Nayib Bukele previously expressed:  2.73 million people already using Chivo Wallet.  180 new users every minute (users not downloads). 1 million dollars in remittances being received every day.

There is no limit to the discount that one can avail of.  The more BTC payments the consumer decides to make the proportionate discount will be provided. Bukele opined that discounts will bring down the impact of fuel prices on the consumers. This subsidy is ultimately beneficial to the public.

However, some of the Salvadorians opine that the discount is coming from their taxes. The government pays the rebate amount from the taxes paid by those who walk on foot.

There are also criticisms doing the rounds about how the discounts are made available for only those who pay with Chivo. There are also questions as to why the relief on fuel price was not processed previously.

Bukele has also expressed that he is focusing on stabilizing the domestic price of liquified gas. The president also reinstated that while the international market had planned a $1.17 rise in the price of 25-pound cylinders of liquified gas, Salvadoran locals will have “a slight reduction” in costs.

Any kind of reduction in the global gas prices will be passed on to consumers during the period according to the government.  However, he has also clarified that the government will be absorbing the increase for only one year.

For those who are new, El Salvador has legalized Bitcoin usage as a legal tender.  It has already started installing Bitcoin ATMs to make it possible for citizens to convert the token into U.S. dollars.

The government created a $150 million fund to back the conversions of Bitcoin to U.S. dollars.

Salvadorans are now capacitated to download the digital wallet from the government, enter their ID number to receive $30 in Bitcoin and then to spend it and use it as regular spending money in El Salvador.

To promote the usage of BTCs the government has been doing a lot of things.  The discount for fuel in the form of a subsidy for those who are using the Chivo Bitcoin Wallet is a part of the attempt to encourage citizens to use BTC at fuel outlets.