El Salvado has become the first country in the world to adopt bitcoin as legal tender, according to reports.

The decision comes after lawmakers in El Salvado's Congress voted in favor of the Bitcoin Law, receiving 62 out of 84 of the legislature's vote. Consequently, the price of bitcoin rose 5% to $34,239.17 shortly after the vote.

The president of El Salvado, Nayib Bukele sent the law to Congress for a vote. "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," reads the statement.

Commenting on the development Shivam Thakral, CEO of, BuyUcoin said, "EI Salvador's decision to make bitcoin a legal tender will boost financial inclusion in their country as the majority of the population does not have access to formal banking channels. In India, our approach towards crypto is different, we don't see it as a legal tender but as an asset class. Indian investors have shown their faith in crypto even during the massive price fluctuations because they have an investment horizon of 2-3 years. We are eagerly waiting for CBDC in India which will open up new avenues of growth for the digital asset industry".

Approximately 70% of El Salvador does not have access to traditional financial services, according to the Bitcoin Law. Cryptocurrency is seen as a way to increase financial inclusion. The development is expected to help Salvadorans living abroad to send remittances back home, the U.S. dollar will also continue as legal tender. "It will bring financial inclusion, investment, tourism, innovation, and economic development for our country," Bukele tweeted shortly before the vote.