S&P warns of a blow to El Salvador's credit rating
Credit rating agency thinks Standard and Poor's Standard & Poor's Worldwide, El Salvador has severely damaged its credit rating after the enactment of a law Bitcoin, which is recognized as legal tender nationwide, in 7 September.
El Salvador investigates government purchases of Bitcoin and ATMs
According to a report issued by Reuters On Thursday, the coin will embrace Bitcoin In El Salvador, it exposes its economy to “significant financial risks” and can pose challenges to the country's lending industry.
The agency also believes that this move may weaken the chances of El Salvador In obtaining a loan agreement of one billion dollars, it seeks to obtain it from IMF.
Reported Standard & Poor's Standard and Poor’s that:
“Risks Associated With Adoption Bitcoin As a legal currency in El Salvador, its benefits exceed the desired.”
emphasizing “Direct negative effects” to law Bitcoin Bitcoin on the country's credit rating.
While international credit rating agencies offer a bleak view of El Salvador's rating, in the run-up to the credit rating Bitcoin.
It was an agency FitchEl Salvador was sealed with (B) in April 2020, which is the assessment of the country as high-risk with a negative outlook, before the Salvadoran president's announcement nayeb Bukili Here's to watching, about his intention to confess Bitcoin As legal tender in June of this year.
as she did Standard & Poor's assessing El Salvador's credit score as (B) From 28 Dec 2018, indicating that it may be due to be updated, given the significant shift in the country's monetary policy.
El Salvador exempts foreign investors from taxes on Bitcoin profits
While the president keeps Bukili With support rates still high among the Salvadoran population, his leadership and government are facing a backlash for the enactment of a law. Bitcoin, despite the low literacy rates about cryptocurrencies in the country.
In this regard, one of the raped tweeters wrote:
To my English speaking friends on Twitter Twitter: On 9/15/21, El Salvador did not celebrate the 200 year of independence. Instead, we filled the streets to protest the transgression of democracy and the rule of law, and the nascent dictatorship. This is the reason for our journey..."
Apparently there is external pressure from financial agencies, such as The World Bank AndInternational Monetary Fund, who reiterated feelings of caution this month, regarding the adoption of Bitcoin as a legal tender.
On the other hand, a spokesperson International Monetary Fund، Jerry Rice, told a news conference on Thursday that while the fund was still in discussions with El Salvador about a possible support program, it had not changed its position that the consequences of adopting Bitcoin “It could be dire.”.
where he said rice:
“The potential of the program International Monetary Fund El Salvador is under discussion, and its goals are clear: growth, financial stability, and so on. Regarding the case BitcoinI think we've been fairly clear in our public statements."
Bitcoin casts an impact on bond trading in El Salvador
The World Bank spokesperson also added, in his recent statements:
“Although the government has contacted us for help with Bitcoin However, this is not something the World Bank can support, given the environmental shortcomings and the issue of transparency.”
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