El Salvador early Wednesday approved the adoption of leading cryptocurrency Bitcoin as legal tender, the president announced.
“The #BitcoinLaw has been approved by a supermajority in the Salvadoran Congress. 62 out of 84 votes! History! #Btc,” Nayib Bukele, president of the small Central American country, wrote on Twitter just after midnight local time.
The move makes El Salvador the first country in the world to formally adopt the digital currency. Bitcoin will be used in the country alongside the US dollar, El Salvador’s official currency.
While some experts say Bitcoin and cryptocurrencies can be used as a long-term move against macroeconomic conditions, others are concerned that they are highly volatile and can be used in money laundering and illicit transactions.
The price of Bitcoin is currently down around 50% since hitting an all-time high of $64,000 in April. The world’s largest cryptocurrency by market capitalization was trading just above $34,200 at 0655GMT.