El Salvador’s long-term foreign-currency issuer was previously rated at B-grade. He has been listed in the ‘Junk Grade’ in Fitch Ratings. At the same time, the top-3 includes Moody’s and Standard & Poor’s (S&P) along with American credit rating agencies.
A Fitch Ratings report said the adoption of bitcoin as legal tender has added to the uncertainty surrounding El Salvador. The International Monetary Fund (IMF) in November last year expressed concern over the economic stability of El-Salvador. Then the IMF said that given the volatility of bitcoin, its use as a currency poses threats to financial stability. Bitcoin should not be used as a currency.
However, the IMF’s suggestion had no effect on El Salvador. The country’s Treasury Minister Alejandro Zelaya angrily rejected the IMF’s recommendation to abandon bitcoin as a currency earlier this month.
The Global Financial Organization, a group of 90 countries, suggested El-Salvador to dissolve a $150 million (about Rs 1,120 crore) trust fund linked to bitcoin. The purpose of this trust fund was to allow the switch of bitcoin to the US dollar and to encourage people to adopt bitcoin.
This country can have more than 1500 bitcoins. Its value is more than $ 65 million (about Rs 490 crore). The current trading price of bitcoin on the international exchange CoinMarketCap is $43,415 (about Rs 33 lakh).
El Salvador is taking many steps to make bitcoin popular among the people. From setting up a bitcoin ATM to creating a bitcoin wallet named Chivo, there have been many things to do here.
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