El Salvador became the first country in the world to officially consider Bitcoin as a legal tender on Wednesday after Congress approved President Nayib Bukele’s proposal to adopt the cryptocurrency.
Congress approved the Bitcoin Law which was proposed last week with 62 out of 84 possible votes on Tuesday night.
“It will bring financial inclusion, investment, tourism, innovation, and economic development for our country,” tweeted President Bukele shortly before the vote.
El Salvador’s economy relies heavily on remittances from Salvadoreans working outside the country and sending money back home, making up around 20% of the country’s gross domestic product (GDP).
The law was approved with the support of Bukele’s allies despite the refusal of the minority opposition parties to back it.
“This is a law that will put El Salvador on the world’s radar, we will be more attractive for foreign investment,” said Romeo Auerbach, deputy of the Grand Alliance for National Unity party, Bukele’s ally.
The new law requires businesses to accept Bitcoin as legal tender for goods or services unless the business doesn’t have the technology needed to perform the transaction.