Fitch Ratings stated on August 17 that El Salvador may face “regulatory and operating risks” that comes with adopting Bitcoin as a legal currency, as well as negatively affecting the insurance system in the country.
The latest major credit agency to join Fitch in warning the Latin American country is S&P Global, which noticed “immediate implications” once the country started adopting Bitcoin.
One of the largest risks would be the inability to receive support from programs like the International Monetary Fund (IMF). The report additionally said that there would be an “increase in fiscal vulnerabilities.”
S&P pointed out that the risks associated with adopting Bitcoin as legal tender appear to outweigh the benefits that come with it.
S&P Global’s statements came after the incident involving a crowd of anti-bitcoiners flooding the streets on September 15, even setting a bitcoin ATM on fire. Moreover, human rights organization Cristosal filed a complaint to the Salvadoran Court of Accounts to get the local government investigated for the bitcoin ATM deals and kiosk construction.
