President of El Salvador, Nayib Bukele has stated that consumers will receive a discount on petrol prices when they pay using the state-backed Bitcoin wallet known as Chivo.

Calling it “positive news for the pockets of Salvadorans,” the initiative involves a $0.20 per gallon reduction in petrol prices, affirmed by the president on Twitter.

Bukele said of the move: "The state company Chivo negotiated with the largest gas station companies in our country, so that starting tomorrow, their stations will sell each gallon of fuel $ 0.20 cheaper, with Chivo wallet."

The president went on to say that the discount has no limit and will eradicate “several increases in the international price of fuels” and “reduce transportation costs in supply chains.” 

Nevertheless, a number of citizens are not certain the subsidy will ultimately benefit consumers. According to Twitter user Adan_3840: “Those 20 cents will come from all of us, right? The gas station does not lose, there goes the refund after paid with the taxes of even those who walk on foot.”

Others were sceptical of the government’s move to offer the discount to people solely using the Chivo Bitcoin wallet.

El Salvador became the first country in the world to accept the largest cryptocurrency as legal tender last month. President Bukele subsequently stated that one-third of the population were already utilising Chivo less than three weeks after it was introduced.

deVere founder and CEO Nigel Green said at the time: “El Salvador has made history and become a true pioneer of the digital age. Where El Salvador has led, we can expect other developing countries to follow.”

He went on to say: “There will no doubt be critics – probably those based in wealthy countries – who will knock this bold move by El Salvador. But I believe we should welcome the forward-thinking approach to solving complex issues.”