El Salvador on Wednesday officially became the first country to adopt bitcoin as legal tender.
President Nayib Bukele announced on Twitter just after 2 a.m. ET that the Central American country’s legislative body voted in favor of the so-called Bitcoin Law — making the digital currency the nation’s official legal tender, along with the US Dollar.
The law received 62 out of 84 votes, according to Bukele, Latin America’s youngest president.
“The purpose of this law is to regulate bitcoin as unrestricted legal tender with liberating power, unlimited in any transaction, and to any title that public or private natural or legal persons require carrying out,” the law reads.
That means prices for goods and services across the country can now be shown in bitcoin, taxes can be paid with the crypto, and transactions in bitcoin will not be subject to capital gains tax, the law says.
Bitcoin was last seen trading about 3 percent higher, at almost $34,200 per coin.
It’s still unclear exactly how El Salvador will roll out the use of bitcoin, which is known for its extremely volatile prices, as legal tender.
The #BitcoinLaw has been approved by a supermajority in the Salvadoran