El Salvador, which legally accepted Bitcoin in September of 2021, remains on the agenda. Although the President of the country, Nayib Bukele, thinks that cryptocurrencies are indispensable, many authorities think the opposite. El Salvador has felt the effects of this closely until now. A new one has been added today.
El Salvador rejected the IMF’s call for Bitcoin!
El Salvador decided to keep Bitcoin as the official currency, rejecting the call made by the IMF for the second time in 6 months.
Fitch Downgrades El Salvador’s Credit Rating to CCC
Fitch Ratings, which makes financial evaluations of countries, announced El Salvador’s credit rating today. The country, which has also received a large amount of Bitcoin in the past weeks, has had its B- rating downgraded to CCC, which is stated as “well below the investment grade”. Fitch criticizes Nayib Bukele. The statement on the subject included the following sentences:
The weakening of institutions and the concentration of power in the presidency, policy unpredictability and the adoption of Bitcoin as the official currency have increased uncertainty about the potential for an IMF program to unlock financing for 2022-2023.
In Fitch’s view, the legal adoption of bitcoin could have a negative impact on the country’s economy due to fluctuations in cryptocurrencies. According to authorities all over the world, cryptocurrencies do not stand on solid ground. The President of El Salvador, who has had problems with the IMF recently, is quite confident in cryptocurrencies.
El Salvador, It was the first country to legally accept Bitcoin. Nayib Bukele has a dream about cryptocurrencies. The President of the country has said that he has a dream to build a tax-free Bitcoin city. El Salvador Bukele, who wanted it to become a global cryptocurrency mining point, had some reactions across the country.
How do you assess El Salvador’s legal acceptance of Bitcoin? Do you think cryptocurrencies create an unsafe environment for countries? Please share your thoughts with us in the comments section.