The law states that “all economic agents shall accept bitcoin as a form of payment when it is offered by the purchaser of a good or service.” It also says that tax payments can now be made in bitcoin.
The move delivers another win for cryptocurrency bulls as digital coins become more widely accepted around the world.
El Salvador is the smallest country in Central America, and while it was quick to contain the coronavirus pandemic, its economy was hit hard last year, according to the World Bank.
Cryptocurrencies don’t require a bank account; they’re held in digital wallets. That could help people in poorer communities — such as many in El Salvador but also in minority communities in the United States — gain increased access to their finances.
— Charles Riley, Mitchell McCluskey and David Goldman contributed to this report.