El Salvador's approves legislation to make Bitcoin legal tender

San Salvador (El Salvador): El Salvador's Legislative Assembly has approved legislation making the cryptocurrency Bitcoin legal tender, the first country to do so, just days after President Nayib Bukele made the proposal at a Bitcoin conference. The digital currency can be used in any transaction and any business will have to accept payment in Bitcoin, with the exception of those lacking the technology to do so.

The US dollar will also continue to be El Salvador's currency and no one will be forced to pay in Bitcoin, according to the legislation approved late Tuesday. The exchange rate between the two currencies will be established by the market and all prices will be able to be expressed in Bitcoin - though for accounting purposes, the dollar will continue to be the currency of reference. The govt will promote training for people to be able to carry out transactions using Bitcoin.

Economy Ministry noted that 70% of Salvadorans do not have access to traditional financial services and it said the country needs to authorise the circulation of a digital currency who value exclusively follows free market criteria to stimulate growth.