Ratings provider warns El Salvador of risks associated with bitcoin law

Is El Salvador’s decision to use bitcoin as legal tender a risky proposition? Like. And we now have the expert opinion of ratings agency Fitch Ratings, which confirms this. To be honest, a lot of what he says is true. Bitcoin is volatile. At first, all companies will exchange earned BTC for dollars. We are not sure whether the government program to do this will work as effectively as advertised.

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On the other hand, it is clear that they are not doing their homework. Their knowledge of Bitcoins is superficial at best. Fitch’s rating analysis of the situation offers no new understanding and repeatedly reveals what is clear. Why this problem? Well, they claim it on their official website:

Award-winning rating, commentary and research provider. In our age of instability and technological transformation, we provide clarity and understanding. Human understanding that allows our customers around the world to make the best decisions.

They can do better for these kinds of conversations.

What Did Fitch Say About El Salvador?
Will El Salvador become a riskier country for insurance companies when the Bitcoin law goes into effect? Definitely Especially at first. This is always the first time. Without precedent, how can this not be risky? Fitch’s ratings are right when it says the event is likely to be credit negative for local insurers exposed to the newly created currency, due to the increased risk of volatility in exchange rates and earnings and October regulatory and operational risk factors.”

The company also says they do not expect bitcoin to be “widely used by insurers to make claims or payments, or by insurance companies to provide policies in digital currency.” This is probably true. Everyone in El Salvador will be cautious at first, especially old companies like insurance companies. In

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