A search for the $B^{0}\to K^{+}K^{-}$ decay is performed using $pp$-collision data collected by LHCb. The data set corresponds to integrated luminosities of 1 and 2 fb$^{-1}$ at center-of-mass energies of 7 and 8 TeV, respectively. This decay is observed for the first time, with a significance of more than five standard deviations. The analysis also results in an improved measurement of the branching fraction for the $B_s^0\to \pi^+\pi^-$ decay. The measured branching fractions are $BR(B^0\to K^+K^-) = (7.80 \pm 1.27 \pm 0.81 \pm 0.21) \times 10^{-8}$ and $BR(B_s^0\to\pi^+\pi^-) = (6.91 \pm 0.54 \pm 0.63 \pm 0.19 \pm 0.40) \times 10^{-7}$. The first uncertainty is statistical, the second is systematic, the third is due to the uncertainty o...