El Salvador's Legislative Assembly has approved legislation making the cryptocurrency Bitcoin legal tender in the country, the first country to do so. It comes just days after the President raised the proposal at a Bitcoin conference.
The digital currency will be able to be used in any transaction and any business will have to accept payment in Bitcoin, with the exception of those lacking the technology to do so.
The U.S. dollar will also continue to be El Salvador's currency and no one will be forced to pay in Bitcoin. The exchange rate between the two currencies will be established by the market.
A cryptocurrency (or “crypto”) is a digital currency that can be used to buy goods and services. Cryptocurrencies work using a technology called blockchain.
While El Salvador says the move will promote innovation and economic development, experts say the bold move will have a global impact that could speed up mass adoption of cryptocurrencies.
With interest rising the Federal Trade Commission issued a warning in April against crypto scams, advising people to avoid companies on social medial or emails making big claims -- like guaranteeing you'll make a profit or promising big payouts.