El Salvador has severely harmed its credit rating after recognizing BTC as legal tender

According to the reports El Salvador made a big mistake by considering bitcoin as legal tender through bitcoin law on 7 September. A big effect can be seen in the credit rating. 

El Salvador created history through bitcoin law on 7 September. But there are many bad actors and experts, don’t believe in bitcoin and see Bitcoin as a harmful act to use as currency. Many people including journalists are running an Anti-crypto campaign in the national streets. 

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According to the Credit rating agency, Standard and Poor (S&P) Global, El Salvador is facing a big issue and it’s credit rating is going down. 

According to a report by Reuters on 16 September, El Salvador’s Bitcoin law is a very risky step and it can give many risky results for the country. 

Credit agency believes that Bitcoin law of El Salvador may cause a loss in the agreement of El Salvador with the International Monetary Fund (IMF) which secured a $1 billion loan agreement. 

“The risks associated with the adoption of bitcoin as legal tender in El Salvador seem to outweigh its potential benefits,” S&P said, emphasizing the “immediate negative implications”

These things are really a big problem for El Salvador, because on one side opposition leaders are criticizing the Bitcoin law and on other side international authorities are indirectly trolling the president for his decision.

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