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El Salvador becomes first country to adopt bitcoin as legal tender after passing law


El Salvador has become the first country to adopt bitcoin as legal tender.

Lawmakers in the Central American country’s Congress voted by a “supermajority” in favor of the Bitcoin Law, receiving 62 out of 84 of the legislature’s vote. The price of bitcoin was up 5% to $34,239.17 shortly after the vote. Earlier on Wednesday, President Nayib Bukele sent the law to Congress for a vote.

“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.

Prices can now be shown in bitcoin, tax contributions can be paid with the digital currency, and exchanges in bitcoin will not be subject to capital gains tax.