Fitch Ratings warns: El Salvadors
The rating agency Fitch Ratings has now also warned El Salvador against the introduction of (BTC) as legal tender and has expressed concerns that cryptocurrencies could pose systemic risks for the country.
Pointing out the lack of clarity regarding the implementation of Bitcoin in the mass markets, Fitch Ratings warned of the inherent volatility and operational risks to citizens dealing with the crypto ecosystem. The agency also noted El Salvador’s current exposure to poor credit securities, stating that “additional holdings of high-risk assets will only increase that risk.”
At the beginning of June, the Salvadoran Legislative Assembly passed the controversial “Bitcoin Law” by President Nayib Bukele, paving the way for BTC to be recognized as legal tender alongside the US dollar from September 7, 2021. This means that all Salvadoran companies will become Bitcoin for goods or accept services.
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