El Salvador becomes the first country to adopt Legal Bitcoin Tenders

On Wednesday, El Salvador became the first country in the world to adopt Bitcoin as legal tender after Congress approved President Nayib Bukele’s proposal to embrace the cryptocurrency, a move that delighted the currency’s supporters.

With 62 out of 84 possible votes, lawmakers voted in favor of the move to create a law to adopt Bitcoin, despite concern about the potential impact on El Salvador’s programme with the International Monetary Fund (IMF).

Bitcoin, in response, enjoyed its best day in two weeks, rising as much as 6 per cent to US$35,200 (S$46,600).

Mr Bukele has touted the use of Bitcoin for its potential to help Salvadorans living abroad to send remittances back home, while saying the United States dollar will also continue as legal tender.