Bitcoin May Cause Troubles to El Salvador

Bitcoin may cause troubles to El Salvador, judging by the latest developments. Credit rating agencies dropped their ratings of El Salvador.

After the rise of cryptocurrencies, significant changes were observed 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. Funding social responsibility projects with the profits made by collecting Bitcoin from the dips, El Salvador also strives for citizens to get away from fiat money and meet Bitcoin. Credit rating agencies, on the other hand, are not happy about it. One of the leading rating agencies, Fitch, downgraded El Salvador's B- 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 repay the debts of $ 1.3 billion in the third quarter of last year. Financial authorities strongly oppose 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 other countries.