Monday, May 29

“El Salvador doesn’t care,” says president after ratings agency issues warning

After Moody’s, the credit rating agency, issued a warning about the risk of El Salvador’s credit downgrade on account of Bitcoin, President Nayib Bukele stated in capital letters that “El Salvador doesn’t care.”

The words of Moody’s took place last Thursday (13), while Bukele’s statement on the case is available on Twitter, his main means of communication, since this Monday (17).

In addition to Moody’s, others are also concerned about the adoption of Bitcoin by the country located in Central America. In his company is also the IMF (International Monetary Fund).

El Salvador doesn’t care

You probably never heard about El Salvador before the adoption of Bitcoin. Despite this, after the introduction of the Bitcoin Law on September 7, 2021, the country seems to be in the spotlight both from the media and international bodies.

The latest attack on the country came from the risk rating agency Moody’s, which sees risks in Bitcoin purchases made by the country. The words below are from Moody’s analyst Jaime Reusche, said at Bloomberg.

“[As participações em Bitcoin do governo] certainly increase the risk. [Negociar Bitcoin] is quite risky, particularly for a government that has struggled with liquidity pressures in the past.”

Days later, Nayib Bukele, president of El Salvador, was indifferent to Moody’s statements. On his Twitter he published the message “BREAKING: EL SALVADOR DGAF”, using an acronym for “Don’t Give A Fuck” which translates to “fuck you” or “I don’t care” if you want to avoid swearing.


Nayib Bukele on Moody’s statements

Other countries may adopt Bitcoin

Amazingly, the hardest part has already been done. A first country has already adopted Bitcoin, using it both as a currency and as a store of value.

This sets precedents for others who wish to use a hard currency to guide their economy. Thus escaping from problems such as inflation caused by the creation of more money, as happens with the real and the dollar.

In Bukele’s own prediction, he believes that at least two other countries will adopt Bitcoin as a currency this year. Fidelity, one of the largest asset managers in the world, said that countries that anticipate will benefit.

Finally, where some see risks, others find opportunities. We hope that more people will adopt BTC and become free from current state monetary policies.