{"id":12253,"date":"2021-09-17T22:54:08","date_gmt":"2021-09-17T22:54:08","guid":{"rendered":"https:\/\/www.buyucoin.com\/crypto-labs\/the-big-three-credit-agencies-critique-el-salvadors-bitcoin-adoption-sp-global-warns-of-immediate-negative-implications\/"},"modified":"2021-09-17T22:54:08","modified_gmt":"2021-09-17T22:54:08","slug":"the-big-three-credit-agencies-critique-el-salvadors-bitcoin-adoption-sp-global-warns-of-immediate-negative-implications","status":"publish","type":"post","link":"https:\/\/www.buyucoin.com\/crypto-labs\/the-big-three-credit-agencies-critique-el-salvadors-bitcoin-adoption-sp-global-warns-of-immediate-negative-implications\/","title":{"rendered":"The Big Three Credit Agencies Critique El Salvador\u2019s Bitcoin Adoption \u2014 S&P Global Warns of \u2018Immediate Negative Implications\u2019"},"content":{"rendered":"

All of the \u2018Big Three\u2019 credit agencies have said that El Salvador\u2019s adoption of bitcoin could affect the country\u2019s credit rating in a negative manner. After both Moody\u2019s and Fitch Ratings published reports on the matter in El Salvador, S&P Global said that the bitcoin adoption has had \u201cimmediate negative implications for its credit rating.\u201d<\/strong><\/p>\n

S&P Global Joins Fitch Ratings, Moody\u2019s Casting Criticism Down on Salvadoran Bitcoin Adoption<\/h2>\n

On August 17, 2021, Bitcoin.com News reported<\/a> on Fitch Ratings detailing that El Salvador adopting bitcoin (BTC<\/a>) as a legal currency may push the country toward \u201cregulatory and operating risks.\u201d<\/p>\n

Moreover, Fitch said that the adoption of bitcoin would negatively affect the insurance system in the Latin American country. Fitch Ratings\u2019 report in August followed Moody\u2019s downgrade<\/a> in June, after the \u2018Big Three\u2019 credit agency dropped the country to a Caa1 from a B3 rating and highlighted a \u201cdeterioration in the quality of policymaking.\u201d<\/p>\n

S&P Global<\/a> seems to agree with Fitch and Moody\u2019s and on Friday, a report<\/a> from reuters.com indicates that the credit agency S&P Global notices \u201cimmediate implications\u201d after the country adopted bitcoin (BTC<\/a>). One of the largest risks is getting support, S&P said from programs like the International Monetary Fund (IMF). Moreover, the report said that S&P envisions an \u201cincrease [in] fiscal vulnerabilities.\u201d<\/p>\n

\u201cThe risks associated with the adoption of bitcoin as legal tender in El Salvador seem to outweigh its potential benefits,\u201d S&P explained on Thursday. \u201cThere are immediate negative implications for [the] credit.\u201d Thomson Reuters\u2019 Marc Jones highlights that El Salvador currently has a B- rating which means it is stable.<\/p>\n

<\/p>\n

S&P Global\u2019s latest statements follow the recent action that\u2019s been taking place in El Salvador. For instance, protestors took to the streets on September 15 and set a bitcoin automated teller machine (ATM) on fire<\/a>. Furthermore, a complaint<\/a> filed by a human rights organization called Cristosal sent to the Salvadoran Court of Accounts wants the Salvadoran government investigated for the bitcoin ATM deals and kiosk construction.<\/p>\n

What do you think about S&P Global\u2019s latest statements about El Salvador adopting bitcoin as legal tender? Let us know what you think about this subject in the comments section below. <\/strong><\/em><\/p>\n

Bitcoin News
\nNews, Big Three, Big Three Credit Agency, Bitcoin, Bitcoin (BTC), Bitcoin Legal Tender Law, Business Sector, Caa1, credit, Credit Agencies, Crypto Adoption, Downgrade, El Salvador, expenses, Fitch Ratings, Insurance, Insurance Sector, insurers, IT absorption, Moody’s, Negative, negative rating, S&P Global, S&P Global credit agency, S&P Global ratings, Salvadoran Congress, Sept. 7, Tender Law<\/p>\n","protected":false},"excerpt":{"rendered":"

All of the \u2018Big Three\u2019 credit agencies have said that El Salvador\u2019s adoption of bitcoin could affect the country\u2019s credit rating in a negative manner. After both Moody\u2019s and Fitch Ratings published reports on the matter in El Salvador, S&P Global said that the bitcoin adoption has had \u201cimmediate negative implications for its credit rating.\u201d…<\/p>\n","protected":false},"author":0,"featured_media":12254,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[53,3],"tags":[],"class_list":["post-12253","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain-news","category-coin-news"],"_links":{"self":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/12253"}],"collection":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/comments?post=12253"}],"version-history":[{"count":0,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/12253\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media\/12254"}],"wp:attachment":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media?parent=12253"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/categories?post=12253"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/tags?post=12253"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}