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.
Read also: Bitcoin detractors burn Bitcoin ATM as part of demonstration against El Salvador president
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.
Read also: World’s first physical statue of pseudonymous Bitcoin creator
