After the rise of cryptocurrencies, significant changes took place in the context of countries. While many countries impose regulations and taxes on cryptocurrencies, El Salvador became the first country to accept Bitcoin as an official payment unit.
El Salvador is in trouble
Funding social responsibility projects with the profits made by collecting Bitcoin from the bottom, El Salvador is also making efforts to get citizens to get away from fiat money and meet Bitcoin. Credit rating agencies, on the other hand, are not happy with this at all.
Famous Salvador’s Bitch, El Salvador’s rating agency – downgraded its rating to CCC. The reason was the acceptance of Bitcoin as a legal payment tool and the uncertainty of the policies. It is stated that it will become much more difficult to pay off the debts of $ 1.3 billion in the third quarter of last year.
Financial authorities are strictly against the fragile nature of Bitcoin becoming a legal payment instrument. The IMF also warned El Salvador about this. This news may be upsetting as the cryptocurrency community awaits legal adoption from countries. Downgrading is something that states are also worried about. On the other hand, if there was a legal payment instrument in developed countries, I wonder if Fitch would have given the same reaction.
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