El Salvador has become the first country in the world to adopt bitcoin as legal tender after its Congress approved the move on 9 June.
With 62 out of 84 possible votes, lawmakers voted in favor of the move to create a law to adopt bitcoin, despite concern about the potential impact on El Salvador's program with the International Monetary Fund, Reuters reported.
Bukele has argued the use of bitcoin for its potential to help Salvadorans living abroad to send remittances back home, while saying the US dollar will also continue as legal tender. In practice, El Salvador does not have its own currency.
It will bring financial inclusion, investment, tourism, innovation and economic development for our country."
President Nayib Bukele said in a tweet: "It will bring financial inclusion, investment, tourism, innovation and economic development for our country."
Bukele later said he had instructed state-owned geothermal electric firm LaGeo to develop a plan to offer bitcoin mining facilities using renewable energy from the country's volcanoes.
He said the idea was to build a bitcoin mining hub around the country's geothermal potential. He also said that El Salvador would offer citizenship to people who showed evidence they had invested in at least three bitcoins.
The use of bitcoin will be optional for individuals and would not bring risks to users, Bukele said, with the government guaranteeing convertibility to dollars at the time of transaction through a $150 million trust created at the country's development bank BANDESAL.
Under the law, bitcoin must be accepted by firms when offered as payment for goods and services.
Tax contributions can also be paid in the cryptocurrency.