By Marc Jones
LONDON (Reuters) – El Salvador’s adoption of bitcoin as authorized tender has quick adverse implications for it credit standing S&P World stated on Thursday.
S&P stated the primary dangers have been that it may threaten its hopes of securing a help programme with the Worldwide Financial Fund, improve fiscal vulnerabilities and damage banks by creating foreign money mismatches after 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 adverse implications for (the)
S&P at present charges the central American nation at B- with a ‘secure’ outlook. Moody’s reduce its El Salvador score to Caa1, its equal of 1 score notch beneath B-, on the finish of July. It additionally saved the score on a downgrade warning.
(Reporting by Marc Jones; enhancing by Rodrigo Campos)