MIAMI, Florida — El Salvador is to submit legislation that would make it the first sovereign nation in the world to accept bitcoin as legal cash, alongside the U.S. dollar.

The price of Bitcoin increased marginally from $33,555 to $34,398, as per CoinMarketCap, immediately after El Salvador's President Nayib Bukele announced on Wednesday morning that Bitcoin would be accepted as legal cash.

El Salvador has become the world's first government to recognise Bitcoin as legal cash. The Central American nation's Bitcoin law, which was forwarded to Congress by President Nayib Bukele on Wednesday morning, was adopted by a "supermajority" of 62 out of 84 votes in the parliamentary assembly. President Bukele made the statement via Twitter. “The #BitcoinLaw has been ratified by a supermajority of the Salvadoran Congress. 62 out of 84 people voted! “We've made history!” At 11:35 a.m. IST, a tweet was sent out.

The approval was also tweeted by El Salvador's legislative assembly. “The legislative plenary session accepts the #LeyBitcoin (Bitcoin law) with 62 votes, making #Bitcoin legal tender in EL Salvador.”

Shortly after the clearance was announced, the price of Bitcoin rose from $33,555 to $34,398, according to CoinMarketCap.

The following is a copy of the statute that the President released on Twitter: The market will determine the exchange rate between Bitcoin and the US dollar. Bitcoin can be used to express prices. Bitcoin can be used to pay tax contributions. Bitcoin exchanges, like any other legal cash, will be exempt from capital gains tax. All obligations in US dollars that existed prior to the law's effective date may be paid in Bitcoin.

Balaji Srinivasan, a Silicon Valley angel investor, said of the law, "Amazing." If I'm reading this correctly, all economic agents who are technologically capable of receiving BTC as payment *must* accept it — however rapid conversion to USD is available to anyone who doesn't want to take a pricing risk. Bitcoin has a mandate.”

President Bukele said on Monday that after Bitcoin becomes legal cash, there will be no capital gains tax and that crypto entrepreneurs will be granted instantaneous permanent residency in the country. Following the President's declaration on Sunday that Bitcoin will be made legal tender, there was a momentary rise in interest among persons looking for real estate in El Salvador.