LONDON, Sept 16 (Reuters) – El Salvador’s adoption of bitcoin as authorized tender has instant destructive implications for it credit standing S&P International stated on Thursday.
S&P stated the principle dangers have been that it may threaten its hopes of securing a assist 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 instant destructive implications for (the)
S&P at present 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 beneath B-, on the finish of July. It additionally stored the score on a downgrade warning.
Reporting by Marc Jones; modifying by Rodrigo Campos
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