Home Bitcoin News El Salvador's bitcoin adoption has "immediate implications" for rating – S&P Global – Reuters

El Salvador's bitcoin adoption has "immediate implications" for rating – S&P Global – Reuters

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A illustration of cryptocurrency Bitcoin is seen on this illustration taken August 6, 2021. REUTERS/Dado Ruvic/Illustration/File Photograph/File Photograph/File Photograph/File Photograph

LONDON, Sept 16 (Reuters) – El Salvador’s adoption of bitcoin as authorized tender has rapid detrimental implications for it credit standing S&P World mentioned on Thursday.

S&P mentioned the primary dangers had been that it may threaten its hopes of securing a help programme with the Worldwide Financial Fund, improve fiscal vulnerabilities and harm banks by creating foreign money mismatches once they dish out loans.

“The dangers related to the adoption of bitcoin as authorized tender in El Salvador appear to outweigh its potential advantages,” S&P mentioned. “There are rapid detrimental implications for (the)

credit score”.

S&P at the moment charges the central American nation at B- with a ‘steady’ outlook. Moody’s lower its El Salvador score to Caa1, its equal of 1 score notch under B-, on the finish of July. It additionally saved the score on a downgrade warning.

Reporting by Marc Jones; enhancing by Rodrigo Campos

Our Requirements: The Thomson Reuters Trust Principles.

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