To encourage its citizens to use bitcoin, El Salvador’s state-owned digital wallet company Chivo will give citizens a discount on fuel payments.
Bitcoin wallet “Chivo” cooperates with major gas companies:
Announced Mr. “Najib Bokela” PresidentEl Salvador yesterday, a new feature onadoptionAlpetkoan in El Salvador.
He tweeted that the government of El Salvador is seeking to reduce the cost of fuel in the country for bitcoin traders.
The government will absorb the additional fuel cost increases in international markets for one year.
According to Bukele, this will reduce gas prices in the country for consumers and small businesses and boost the economy.
The Bitcoin wallet Chivo will play a role in lowering gas prices, as Chivo has partnered with the largest gas stations in the country, which will make gas $0.20 a gallon cheaper for its wallet users.
The president says this will help erase many of the increases in fuel costs.
According to the same spokesman, the benefit is universal, and applies to public transport, businessmen, individuals and companies in El Salvador.
Bukele believes this provides another direct relief to Salvadorans.
Another step towards Bitcoin adoption in El Salvador:
Although not directly mentioned by the president, the Chivo partnership also provides a financial incentive for citizens to transact in bitcoin.
Since El Salvador’s Bitcoin Adoption Law was passed in June, many in the country have refused to adopt it.
Despite protests from citizens, media and bankers alike, Bukele has been stubborn in enforcing Bitcoin adoption across the country.
When the Chivo wallet was launched, the government offered free $30 worth of bitcoin to citizens as an incentive to use it.
In addition, the government appears to be hoarding bitcoin at every opportunity.
Just last week, El Salvador bought 150 bitcoins, bringing its total bitcoins to at least 700.