Big Three Credit Agencies Criticize Adoption of Bitcoin by El Salvador – S&P Global Warns of ‘Immediate Negative Implications’ – Bitcoin News


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All of the Big Three credit bureaus have said that El Salvador’s adoption of bitcoin could negatively affect the country’s credit rating. After Moody’s and Fitch Ratings published reports on the matter in El Salvador, S&P Global said the adoption of bitcoin had “immediate negative implications for its credit rating.”

S&P Global joins Fitch Ratings, Moody’s criticism of Salvadoran bitcoin adoption

On August 17, 2021, Bitcoin.com News reported on Fitch Ratings that El Salvador adopting bitcoin (BTC) as legal tender could push the country towards “regulatory and operational risks.”

Additionally, Fitch said the adoption of bitcoin will negatively affect the Latin American country’s insurance system. The Fitch Ratings report in August followed the downgrade of Moody’s in June, after the ‘Big Three’ credit agency downgraded the country from B3 to Caa1 and pointed to a ‘downgrade in the quality of policy development ”.

S&P Global appears to agree with Fitch and Moody’s and on Friday, a report from reuters.com said credit agency S&P Global noticed “immediate implications” after the country adopted bitcoin (BTC). One of the biggest risks is getting support, S&P said, from programs like the International Monetary Fund (IMF). Additionally, the report states that S&P is considering an “increase [in] fiscal vulnerabilities.

“The risks associated with adopting bitcoin as legal tender in El Salvador seem to outweigh its potential benefits,” S&P explained Thursday. “There are immediate negative implications for [the] credit. ”Marc Jones of Thomson Reuters points out that El Salvador currently has a B- rating, which means it is stable.

S&P Global’s latest statements follow recent action in El Salvador. For example, protesters took to the streets on September 15 and set a bitcoin automated teller machine (ATM) on fire. In addition, a complaint filed by a human rights organization called Cristosal and sent to the Salvadoran Court of Auditors wants the Salvadoran government to be investigated for ATM bitcoin transactions and the construction of kiosks.

What do you think of the latest statements from S&P Global on El Salvador’s adoption of bitcoin as legal tender? Let us know what you think of this topic in the comments section below.

Tags in this story

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