El Salvador, by country Bitcoin (BTC) He made history by investing and declaring BTC the legitimate currency. El Salvador, the first country to take this step in 2021, may have led other countries, but no other country has yet taken this bold step. Now it has become clear why other countries are hesitant to take this step.
In a statement by Moody’s, El SalvadorIt has been revealed that ‘s Bitcoin step may actually harm the country. The investment services firm responsible for credit risk reports stressed that El Salvador’s Bitcoin “experiment” could increase the country’s credit risk and cut off its access to foreign debt markets.
Bitcoin Warning from Moody’s
moody’s analyst Jaime Reusche In his statement on the subject, he stated that El Salvador’s Bitcoin gambling definitely adds to the risk portfolio. It is known that the country has had liquidity problems before, and this seems to increase the risk even more. Bukele not only declared BTC the legitimate currency, but also bought BTC many times from the top, actually giving financial risk signals.
This may have caught the attention of not only individuals but also institutions.
Buying the bottom 😉
150 new coins added.#BitcoinDay #BTC🇸🇻
— Nayib Bukele 🇸🇻 (@nayibbukele) September 7, 2021
In addition, El Salvador’s Bitcoin bonds also received warnings from other institutions such as the IMF. While El Salvador plans to build a “Bitcoin City” with billions of dollars of BTC-based bonds, for now, Moody’s predicts things will get worse soon.