Fitch Ratings Downgrades El Salvador Deeper Into Junk Status Citing Bitcoin R...
One of the largest rating agencies in the U.S., Fitch Ratings, has downgraded El Salvador’s long-term default rating deeper into junk status, citing risks from adopting bitcoin as legal tender as a key reason. “The adoption of bitcoin as legal tender has added uncertainty about the potential for an IMF program that would unlock financing for 2022-2023,” Fitch detailed. El Salvador Downgraded to Junk Fitch Ratings downgraded El Salvador’s Long Term Foreign Currency Issuer Default Rating (IDR) from “B-” to “CCC”....
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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 […]
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....
Fitch warned that mainstreaming Bitcoin without clarity can introduce volatility and operational risks for Salvadorans. Fitch Ratings has become the latest global credit rating agency to warn El Salvador against adopting Bitcoin (BTC) as legal tender, expressing concerns that crypto assets could cause systemic risks for the Latin nation.Citing the country’s lack of clarity in Bitcoin’s implementation in mainstream markets, Fitch Ratings warned about the inherent volatility and operational risks for citizens associated with the crypto ecosystem. In addition, the agency pointed out El....
“Policy unpredictability” and “adoption of Bitcoin as legal tender” are part of the reasons why the country has received a downgrade from Fitch. El Salvador faces another whipping from a traditional finance firm for its “forbidden” love for Bitcoin (BTC).American credit rating agency Fitch Ratings has lowered El Salvador’s long-term Issuer Default Rating from B- to CCC, mentioning “policy unpredictability” and the “adoption of Bitcoin as legal tender” as some of the factors that led to the downgrade. Apart from these, the statistical rating organization explained that reliance on....
Ratings agency Fitch released a statement on Tuesday with regard to bitcoin acceptance in the corporate playground. The agency says they have observed "great corporate acceptance" of the digital currency in its form as a payment mechanism (to which many enthusiasts would say, "duh!". The observation comes in the wake of DISH Network, Newegg, Expedia, and 1-800-FLOWERS.com announcing their adoption of the digital currency. In addition, Fitch points to the publishing of the 'Coin Pocket' app to the iOS App Store following Apple's change of heart when it comes to approving....