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 quick destructive implications for it credit standing S&P International stated on Thursday.
S&P stated the principle dangers have been that it might threaten its hopes of securing a help programme with the Worldwide Financial Fund, enhance fiscal vulnerabilities and damage 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 stated. “There are quick destructive implications for (the)
credit score”.
S&P presently charges the central American nation at B- with a ‘steady’ outlook. Moody’s lower its El Salvador ranking to Caa1, its equal of 1 ranking notch under B-, on the finish of July. It additionally stored the ranking on a downgrade warning.
Reporting by Marc Jones; enhancing by Rodrigo Campos
Our Requirements: The Thomson Reuters Trust Principles.
