El Salvador announces gas discount for those who pay with government bitcoin wallet
The President of El Salvador, Nayib Bukele, announced on Thursday (30) on his Twitter account that as of October 1, consumers who will fill up their vehicle and pay with the state-owned bitcoin wallet, Chivo, will have a $0.20 per gallon discount.
The benefit, according to Bukele, comes from a partnership between the government and the largest fuel companies in the country.
“This eliminates the various increases in the international price of fuel,” wrote the president.
In a later publication, Bukele stated that the benefit is unlimited and can be used by public transports, businessmen and by any company or person, “which represents yet another direct tax relief for Salvadorans.” He also said that the measure will provide a reduction in transport costs in the logistics sector.
2. La empresa estatal Chivo negoció con las empresas gasolineras más grandes de nuestro país, para que a partir de mañana, sus estaciones vendan cada galón de combustible $0.20 más barato, con @chivowallet.
Esto borra varios aumentos del precio internacional de los combustibles. pic.twitter.com/V3qG168isV
— Nayib Bukele 🇸🇻 (@nayibbukele) September 30, 2021
On Wednesday night, Bukele also tweeted about another government measure, this time about reducing cooking gas through a decree authorizing a price stabilization fund. “Now there will be no longer an increase, but a slight reduction,” Bukele wrote.
El Salvador adopted Bitcoin as its legal currency on September 7 this year and became the first country in history to accept any cryptocurrency as legal currency. To accelerate adoption of the ‘new currency’, the government launched Chivo and a $30 donation campaign for anyone downloading the app.
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More recently, El Salvador has also started to exempt foreign investors from paying taxes on their Bitcoin earnings. About the initiative, Javier Argueta, legal advisor to President Nayib Bukele, commented:
“If a person has Bitcoin assets and makes big profits, there will be no taxes. Obviously, this is done to encourage foreign investment”.
However, in the midst of this movement to adopt the largest cryptocurrency in the world in the small country of Central America, many citizens have been against the technology, forming protest groups and promoting demonstrations.