In a global first, El Salvador adopts bitcoin as legal currency
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El Salvador has gone crypto.
President Nayib Bukele's Bitcoin Law received 62 out of 84 votes in El Salvador's Congress on Wednesday morning, rendering it legal tender in a global first.
In addition to the U.S. dollar, El Salvadorians can use the cryptocurrency to pay for goods and services, send money from abroad, and pay taxes. Per the law, the exchange rate will be freely established by the market. But bitcoin has been known to be volatile, as a single tweet from Elon Musk can cause drastic change in value.
The Bitcoin Law says the state will provide necessary training to help the population — 70 percent of which does not have access to traditional financial services — use bitcoin.
"In the short term, this will generate jobs and help provide financial inclusion to thousands outside the formal economy," Bukele said.
The price of bitcoin rose 5 percent after the vote, NBC News reports. The CEO of digital payments application Strike, which is partnering with El Salvador, called Bukele's proposal a "shot heard 'round the world for bitcoin." The law goes into effect in 90 days.
