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El Salvador Introduces $0.20 Per Gallon Gasoline Subsidy, If Paid In Bitcoin.

El Salvador President Nayib Bukele stated that residents may save $ 0.20 per gallon on gasoline by paying using the government-backed Bitcoin wallet Chivo.

On September 30, the president announced the award through Twitter, calling it “good news for the pockets of Salvadorans.” 

The discount has no limits, according to Bukele, and any local individual or business may take advantage of it. He went on to say that the refund will erase “multiple rises in international gasoline prices” and “lower transportation costs in supply chains.”

Others were skeptical of the government’s choice to provide the discount solely to Chivo users, with one Twitter account questioning why the administration did not provide gasoline price relief sooner.

Bukele also stated that he had authorized a fund to “stabilize” the local price of liquefied gas, in addition to the information. Salvadorans would see a “slight reduction” in expenses if the foreign market had predicted a $ 1.17 increase in the price of 25-pound bottles of liquefied gas, according to the president.

He went on to say that the government will only absorb the rise for a year and that any reductions in worldwide gas costs will be passed on to consumers during that time.

On September 7, El Salvador became the first government to recognize Bitcoin as a legal currency. Bukele stated later that month that after three weeks of Chivo’s introduction, a third of Salvadorans were already using it.

Onlookers, however, were skeptical of Bukele’s claims of rising crypto acceptance, with crypto critic and author David Gerard claiming that Salvadoran authorities are “feeding Bukele figures that he likes” but “bust at the least inspection.”

If the president’s statistics are true, Gerard concluded in his 50ft blockchain assault newsletter that the government-backed wallet “would perform more transactions per day than Visa internationally” based on the Chivo use numbers given by Bukele.

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