El Salvador's Congress voted to approve the president's proposal to use Bitcoin as legal tender, making El Salvador the first country in the world to recognize Bitcoin as a legal currency.
The Congress of El Salvador approved President Nayib Bukele's proposal by 62 votes out of 84, becoming the first country in the world to formally adopt bitcoin as legal tender.
Earlier Wednesday, Salvador Nayebukler (Nayib Bukele) submitted the law to the country's parliament for a vote.
President Bukler said this will bring financial inclusion, investment, tourism, innovation and economic development to El Salvador. The use of Bitcoin is optional and does not pose a risk to users, he added. Bitcoin as legal tender will take effect within 90 days.
Bitcoin is known for its wild price fluctuations, prompting critics to argue that it is not suitable to be an effective currency.
It is unclear how El Salvador will eventually introduce bitcoin as legal tender.
Under the bill, the exchange rate between Bitcoin and the dollar "will be determined freely by the market". The current official currency of El Salvador is the United States dollar.