In El Salvador, Chivo Bitcoin Wallet Users Have Discount On Fuel
El Salvador’s President Naib Bukele has introduced a discount on fuel for residents who pay with the state-owned Bitcoin wallet, Chivo.
The President of El Salvador announced this innovation on Twitter, saying that the state-owned company Chivo, after negotiations with the largest fuel companies, determined that from October 1, gas stations in the country will sell each gallon of fuel for $0.20 cheaper to Chivo wallet users.
According to Bukele, the introduction of such discounts will eliminate the impact of higher global fuel prices and reduce transport costs in supply chains.
Not many people on the Internet were happy about this innovation. Twitter user Adan_3840 suggested that the rebate would be reimbursed to fuel companies through taxes paid by all Salvadorans, even those who don’t drive. Others didn’t like the idea of offering a discount exclusively to Chivo users.
El Salvador became the first country in the world to officially recognize Bitcoin as legal tender and developed a system for integrating the first cryptocurrency into the country’s payment system.
However, like any global innovation, such a change did not pass unnoticed for the country’s economy, especially for the bond market, which collapsed shortly after the entry into force of the law on the adoption of Bitcoin as a means of payment.