On February 9, the American professional baseball team based in Washington, D.C., the Washington Nationals, announced the team has partnered with Terra, the open-source blockchain platform and decentralized autonomous organization (DAO). The Washington Nationals detail that the team is a “leading innovator” and is “consistently introducing new technologies to enhance the fan experience.” Washington Nationals Ink Long-Term Deal With Terra Major League Baseball (MLB) team the Washington Nationals has partnered with the blockchain platform and DAO Terra, according to an announcement published by the team on Wednesday. The deal with Terra follows a slew of sports-related deals with crypto firms, but the MLB team will be the first to partner with an open-source blockchain project. In addition to the partnership, the algorithmic stablecoin UST that’s issued on the Terra blockchain will be “accepted as a payment method at Nationals Park as early as next season.” “The Nationals continue t...
The Big Three Credit Agencies Critique El Salvador’s Bitcoin Adoption — S&P Global Warns of ‘Immediate Negative Implications’
All of the ‘Big Three’ credit agencies have said that El Salvador’s adoption of bitcoin could affect the country’s credit rating in a negative manner. After both Moody’s and Fitch Ratings published reports on the matter in El Salvador, S&P Global said that the bitcoin adoption has had “immediate negative implications for its credit rating.”
S&P Global Joins Fitch Ratings, Moody’s Casting Criticism Down on Salvadoran Bitcoin Adoption
On August 17, 2021, Bitcoin.com News reported on Fitch Ratings detailing that El Salvador adopting bitcoin (BTC) as a legal currency may push the country toward “regulatory and operating risks.”
Moreover, Fitch said that the adoption of bitcoin would negatively affect the insurance system in the Latin American country. Fitch Ratings’ report in August followed Moody’s downgrade in June, after the ‘Big Three’ credit agency dropped the country to a Caa1 from a B3 rating and highlighted a “deterioration in the quality of policymaking.”
S&P Global seems to agree with Fitch and Moody’s and on Friday, a report from reuters.com indicates that the credit agency S&P Global notices “immediate implications” after the country adopted bitcoin (BTC). One of the largest risks is getting support, S&P said from programs like the International Monetary Fund (IMF). Moreover, the report said that S&P envisions an “increase [in] fiscal vulnerabilities.”
“The risks associated with the adoption of bitcoin as legal tender in El Salvador seem to outweigh its potential benefits,” S&P explained on Thursday. “There are immediate negative implications for [the] credit.” Thomson Reuters’ Marc Jones highlights that El Salvador currently has a B- rating which means it is stable.
S&P Global’s latest statements follow the recent action that’s been taking place in El Salvador. For instance, protestors took to the streets on September 15 and set a bitcoin automated teller machine (ATM) on fire. Furthermore, a complaint filed by a human rights organization called Cristosal sent to the Salvadoran Court of Accounts wants the Salvadoran government investigated for the bitcoin ATM deals and kiosk construction.
What do you think about S&P Global’s latest statements about El Salvador adopting bitcoin as legal tender? Let us know what you think about this subject in the comments section below.
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