El Salvador's credit rating could take hit amid Bitcoin adoption warns S&P Glo...
S&P Global believes El Salvador’s recognition of Bitcoin as legal tender has brought “immediate negative implications” for its credit rating. Credit rating agency Standard and Poor (S&P) Global believes the country of El Salvador has severely harmed its credit rating after enacting its Bitcoin Law recognizing BTC as legal tender nationwide on Sept. 7.According to a Sept. 16 report from Reuters, El Salvador’s Bitcoin embrace exposes its economy to significant financial risks and could pose challenges for the country’s lending industry.The credit agency also believes the move could also....
Related News
All of the ‘Big Three’ credit agencies have said that El Salvador’s adoption of bitcoin could affect the country’s credit rating in a negative manner. After both Moody’s and Fitch Ratings published reports on the matter in El Salvador, S&P Global said 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....
Is El Salvador ’s decision to use Bitcoin as legal tender a risky proposition? Probably so. And now, we have the expert opinion of credit rating provider Fitch Ratings to prove it. To be fair, most of what they say is true. Bitcoin is volatile. At first, all businesses will probably exchange the BTC they […]
The economic fallout from Britain’s surprise decision to leave the European Union could continue for a while, with Moody’s lowering the country’s long-term issuer and debt rating from “stable” to “negative.” The rating affects rates the UK must pay to borrow money. Both Moody’s and competitor Fitch had already set Britain’s credit rating at Aa1 (the....
El Salvador didn’t miss the chance to buy the dip as the Bitcoin price fell back to $45,000 after a bullish week. Despite warnings from global agencies regarding its adoption of Bitcoin (BTC), El Salvador's government continues to seize market opportunities. As the Bitcoin price fell below $46,000 on Monday morning, Salvadoran President Nayib Bukele announced on Twitter that the country has “bought the dip.” With 150 new coins, the Central American government now holds 700 BTC, worth close to $32 million at the time of writing.In an obvious nod to the “not financial advice” disclaimers....
Fitch Ratings, the American credit agency and member of the ‘Big Three’ credit agencies, has published a paper on El Salvador’s adoption of bitcoin and making the crypto asset legal tender in the country. Fitch believes that after the country enforces the new tender law it will face “volatility risk” alongside “regulatory and operating risks” as well. Fitch Ratings Says El Salvador’s Bitcoin Adoption Invites New Risks In 21 days, El Salvador’s bitcoin tender law will be enforced after the bill to make bitcoin legal tender in the....