El Salvador Chivo wallet users to get gas price discount

El Salvador’s President believes this will help ease increases in international fuel costs

Bitcoin symbol over El Salvador flag                                 
El Salvador now accepts bitcoin as legal tender – Photo: Shutterstock
                                

The President of El Salvador, Nayib Bukele, has announced that Chivo Wallet users will be entitled to cheaper gas prices. The Chivo wallet is what the country uses to support bitcoin payments within the country, as from 7 September the nation made the lead cryptocurrency legal tender.

Bukele tweeted out that Chivo wallet users will receive a $0.20 discount on a gallon of gas, announcing a partnership between the largest gas stations in the country. The president believes this will help to ease increases in international fuel costs.

The announcement on Twitter was part of a larger thread, where the president also said the government will be absorbing any further increases in the cost of fuel on international markets for one year.     

El Salvador problems on Bitcoin Day

On the day the nation made bitcoin legal tender, it encountered some issues regarding the Chivo wallet, which led to a drop in the price of bitcoin on the day.

This resulted in bitcoin going from $52,698 the previous day to $46,891 on 7 September. On the same day the Central American country’s president sent out a tweet stating that the Chivo wallet app used to support bitcoin payments ran into problems due to capacity issues.

The wallet had to be unplugged to deal with the high demand. Bukele tweeted out in Spanish: “For a few moments Chivo wallet won’t work, we have disconnected it while increasing the capacity of the servers.

“The installation problems that some people had were for that reason. We prefer to correct it before reconnecting.”

“This is wild”

However, on 25 September the president again tweeted that 2.1 million people or a third of the country’s population are actively using the Chivo wallet, his response to this was "this is wild".

The president went onto say that even though Chivo is not a bank, in less than three weeks it gained more users than any bank in El Salvador and “is moving fast to having more users than all banks in El Salvador combined”.

Further reading: Cardano founder predicts other nations will copy El Salvador

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