(Natural News) The Bitcoin Law on Wednesday, June 9, garnered 62 of the possible 84 votes from El Salvador lawmakers, making the Central American country the first to adopt the volatile cryptocurrency as legal tender. Shortly after the vote, bitcoin jumped more than 13 percent to trade above $37,000 before settling lower at $36,435.96, according to CoinDesk data.
“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.
Earlier Wednesday, El Salvador’s President Nayib Bukele sent the law to Congress for a vote. The 39-year-old politician’s party holds a supermajority in El Salvador’s Congress.
“It will bring financial inclusion, investment, tourism, innovation and economic development for our country,” Bukele said before the vote.
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.
This development also comes with financial risks to ordinary Salvadorans and El Salvador in general. The cryptocurrency gains and loses huge amounts of value in a flash – and at times overnight.