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)
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
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