Lawmakers in El Salvador have made history by approving a proposal to accept bitcoin as legal tender. They passed a law that will allow people to use the cryptocurrency to make purchases and pay taxes.
The legislation was proposed by President Nayib Bukele. It will go into effect in 90 days, making bitcoin the second currency to be accepted in El Salvador alongside the US dollar.
The president said the change will empower people who don't have bank accounts or access to other conventional financial services.
He said it will allow them to make payments with their smartphones. He also said it will make international remittances cheaper.
Some experts are concerned about the volatility of bitcoin's price relative to the dollar. They also caution that it is difficult for governments and central banks to monitor and control it.