After lawmakers voted in favor of the law that President Nab Bukeli sent to the country's legislature. El Salvador has become the first country in the world to adopt Bitcoin as a legal currency.

In the Central American Congress, representatives voted overwhelmingly in favour of the Bitcoin Act, receiving 62 of the 84 votes of the Legislature.

It should be noted that the price of Bitcoin rose by 5% to $34.2 thousand shortly after the vote.

The Act provides that its purpose is to regulate Bitcoin as a legal currency that is not restricted by editorial power, unlimited in any transaction, and for any property required by natural, public or private legal persons.

Prices can now be offered in Bitcoin, tax contributions can be paid in digital currency, and Bitcoin exchanges will not be subject to capital gains tax.

Bitcoin is well known for its unbridled price fluctuations, which have led critics to suggest that it is not suitable for effective currency. It's still unclear how El Salvador will finally put Bitcoin into legal currency.

El Salvador's current official currency is the United States dollar, nearly 70% of El Salvador's population suffers from lack of access to traditional financial services, and the crypto currency is seen as a means of increasing financial inclusion.