Bitcoin rallies after El Salvador adopts the crypto as legal tender

The world’s most prominent cryptocurrency, bitcoin, surged 13% on Thursday to above $37,300 after El Salvador officially recognized it as a legal tender, becoming the first country in the world to do so.

The cryptocurrency is still significantly off from its record high of $64,829.14 that was reached in April.

The bill that has been passed in El Salvador will mandate all businesses to accept bitcoin for goods or services, but the government will act as a backstop for entities that aren’t willing to take on the risk of a volatile cryptocurrency.

The Central American country has struck a partnership with digital wallet company Strike to build the country’s modern financial infrastructure using bitcoin technology.

In addition, El Salvador’s state-owned electric company has been instructed to provide cheap electricity for mining the cryptocurrency, powered by volcanoes.