El Salvador has become the first country to make bitcoin legal tender, which President Nayib Bukele hailed as a historic step towards financial inclusion and economic growth for the poor Central American nation.
The country’s legislature, which Bukele controls, passed the bill with 62 of 84 possible votes on Wednesday. “History!” the 39-year-old authoritarian head of state wrote on Twitter.
Bitcoin entrepreneurs were thrilled by the decision in a country where 70 per cent of Salvadorans do not have access to traditional financial services. Analysts were cautious given cryptocurrency’s volatility, and some said it could even put a pending IMF programme at risk.