- Bitcoin surged on Thursday, a day after El Salvador passed legislation to adopt bitcoin as legal tender.
- According to data from CoinDesk, the cryptocurrency settled at $36,435.96 at around 4:48 a.m. ET, before jumping more than 13% to trade above $37,000.
- Bitcoin supporters, who have long seen the digital coin as a viable alternative to fiat currencies, welcomed El Salvador's move.
Bitcoin surged on Thursday, a day after El Salvador passed legislation to adopt bitcoin as legal tender.
According to data from CoinDesk, the cryptocurrency settled at $36,435.96 at around 4:48 a.m. ET, before jumping more than 13% to trade above $37,000.
On Wednesday, lawmakers in the Central American country passed a law that made bitcoin legal tender. Among other things, this means that prices can now be shown in bitcoin and tax contributions can be paid with the digital currency.
Bitcoin supporters, who have long seen the digital coin as a viable alternative to fiat currencies, welcomed El Salvador's move.
The country has partnered with digital wallet company Strike to build the country's modern financial infrastructure using bitcoin technology.
Other cryptocurrencies also got a lift, with both Ether and XRP trading higher.
Bitcoin is still a long way from its all-time high of $64,829.14 it hit in April.
Bitcoin is known for wild price fluctuations, which has led critics to suggest that it is not fit to be an effective currency. The case of El Salvador will be closely monitored and it remains to be seen how bitcoin can serve as a payment mechanism across the country.