In a supermajority vote of its Congress, El Salvador has become the first country to adopt Bitcoin as legal tender. On Wednesday morning, President Nayib Bukele sent the bill to Congress, where the measure was approved by the legislature with 62 of the body’s 84 votes. News of the move boosted the value of the bitcoin exchange rate by 5%.
Although it is currently unclear how El Salvador will integrate cryptocurrency into its economy, bitcoin exchanges will no longer be subject to the country’s capital gains tax. Prices can now be displayed in bitcoins, and the country will accept bitcoins for resident tax contribution payments.
“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 to carry out,” the law reads.