El Salvador's bitcoin law, which was passed in June, took effect on Tuesday, making the world's most popular cryptocurrency legal tender.
In a series of tweets Monday, President Nayib Bukele revealed that the country had purchased a total of 400 bitcoin, the first step in a larger push to add the digital currency to its balance sheet.
Bukele's announcement marks a major milestone for bitcoin. El Salvador is now the first country to have officially put bitcoin on its balance sheet and hold it in its reserves. The legislation allows prices to be displayed in bitcoin, tax contributions to be paid with the digital currency, and exchanges in bitcoin will not be subject to capital gains tax.
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