Big Three Credit Agency Fitch Warns El Salvador Adopting Bitcoin Will Negativ...
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....
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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....
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 […]
American credit rating agency Fitch Ratings, one of the ‘Big Three’ credit rating agencies, has published a report that says stablecoin growth could affect securities and commercial paper (CP) markets. The agency says stablecoins could be “disruptive” and “stablecoin-related turbulence” could “transmit shocks” to other markets.
Fitch Ratings: ‘Stablecoins Could Be Disruptive for CP Markets’
On Monday, the ‘Big Three’ credit agency Fitch Ratings published a report on stablecoins and the growth of....
Global credit rating agency Fitch Ratings believes bitcoin is still too small to affect traditional payment systems and national currencies. The agency's Why Forum published its findings in a report on bitcoin, dubbed 'Sizing up Bitcoin'. The report points out that bitcoin transactions in February 2014 averaged a meagre $68m per day. Despite a tenfold increase year-on-year, bitcoin's average daily transaction volume pales in comparison to Western Union and PayPal. The two payment processors averaged $225m and $492m per day in 2013. Fitch examined bitcoin's potential role in the financial....
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....