El Salvador Becomes First Country to Approve Bitcoin as Legal Tender

El Salvador passed a new law on Wednesday that would make the small Central American country the world’s first to deem bitcoin legal tender, a move that analysts say risks putting its economy at the mercy of the digital currency’s sharp swings, the Wall Street Journal reported. The designation allows bitcoin, the world’s largest cryptocurrency by market value, to be used to buy goods and pay taxes and bank loans. Businesses would be required to accept bitcoin for payment, with the bitcoin-dollar exchange rate set by the market. Converting bitcoin into other currencies won’t be subject to capital-gains tax, according to the three-page bill that was submitted Tuesday evening and swiftly approved after midnight by lawmakers of President Nayib Bukele’s New Ideas party, which enjoys a supermajority in the 84-member Legislative Assembly. Read more. (Subscription required.)