Bitcoin up 5% on recognition as means of payment in El Salvador

The cost of Bitcoin on the Binance crypto exchange has increased by 5 percent in three hours and reached $34,500. The capitalization of the digital coin, according to CoinGecko, has risen to $643 billion, Report informs referring to RBC.

It happened after the first country in the world recognized Bitcoin as an official means of payment. The corresponding decision was made by the Parliament of El Salvador.

Soon, the new law is to be signed by the country’s President Nayib Bukele. After that, 90 days will be given to creating infrastructure for payments in cryptocurrency.

Acceptance of bitcoins for payment will become mandatory in the country. The head of El Salvador stressed that the cryptocurrency would be legal payment means along with the US dollar. The government also plans to create an official crypto wallet and will store bitcoins worth $150 million in it in a trust fund based on the Development Bank of El Salvador to ensure the automatic and instant exchange of Bitcoin for the US dollar.