The Big Three Credit Agencies Critique El Salvador’s Bitcoin Adoption — S&P Global Warns of ‘Immediate Negative Implications’ – Bitcoin News
All of the ‘Big Three’ credit score businesses have stated that El Salvador’s adoption of bitcoin might have an effect on the nation’s credit standing in a detrimental method. After each Moody’s and Fitch Ratings revealed experiences on the matter in El Salvador, S&P Global stated that the bitcoin adoption has had “immediate negative implications for its credit rating.”
S&P Global Joins Fitch Ratings, Moody’s Casting Criticism Down on Salvadoran Bitcoin Adoption
On August 17, 2021, Bitcoin.com News reported on Fitch Ratings detailing that El Salvador adopting bitcoin (BTC) as a authorized currency could push the nation towards “regulatory and operating risks.”
Moreover, Fitch stated that the adoption of bitcoin would negatively have an effect on the insurance coverage system within the Latin American nation. Fitch Ratings’ report in August adopted Moody’s downgrade in June, after the ‘Big Three’ credit score company dropped the nation to a Caa1 from a B3 score and highlighted a “deterioration in the quality of policymaking.”
S&P Global appears to agree with Fitch and Moody’s and on Friday, a report from reuters.com signifies that the credit score company S&P Global notices “immediate implications” after the nation adopted bitcoin (BTC). One of the most important dangers is getting help, S&P stated from packages just like the International Monetary Fund (IMF). Moreover, the report stated that S&P envisions an “increase [in] fiscal vulnerabilities.”
“The risks associated with the adoption of bitcoin as legal tender in El Salvador seem to outweigh its potential benefits,” S&P defined on Thursday. “There are immediate negative implications for [the] credit.” Thomson Reuters’ Marc Jones highlights that El Salvador presently has a B- score which implies it’s secure.
S&P Global’s newest statements observe the current motion that’s been going down in El Salvador. For occasion, protestors took to the streets on September 15 and set a bitcoin automated teller machine (ATM) on fire. Furthermore, a grievance filed by a human rights group referred to as Cristosal despatched to the Salvadoran Court of Accounts desires the Salvadoran authorities investigated for the bitcoin ATM offers and kiosk development.
What do you consider S&P Global’s newest statements about El Salvador adopting bitcoin as authorized tender? Let us know what you consider this topic within the feedback part beneath.
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