Bitcoin price surged on yesterday after El Salvador passed a law to adopt BTC as legal tender. The cryptocurrency was trading at $37,176.44 at around 11:42 p.m. ET, up 13% from the previous 24 hours, according to CoinDesk data.
Bitcoin Jumping Above $37,000
On Wednesday, lawmakers in the Central American country passed a law that made BTC legal tender. Among other things, it means prices can now be shown in bitcoin and tax contributions can be paid with the digital currency.
Bitcoin proponents, who have long seen the digital coin as a viable alternative to fiat currencies, welcomed El Salvador’s moves. The country has struck a partnership with digital wallet company Strike, to build the country’s modern financial infrastructure using cryptocurrency technology.
Other cryptocurrencies got a lift as well, and ether and XRP were both trading higher. BTC is still significantly off of its record high of $64,829.14 that was hit in April. BTC is known for wild price swings that have prompted critics to suggest it is not suitable to be an effective currency. El Salvador’s case will be closely watched to see how BTC might work as a payments mechanism on a country-wide basis.