Moody's criticizes El Salvador for legalizing bitcoin Ratings agency Moody's believes that
the Salvadoran authorities have made a serious mistake by legalizing bitcoin. Analyst Jaime Reusch expects the investment attractiveness of this Latin American state to decline.
El Salvador currently controls 1,391 bitcoins. Bloomberg estimates that
the country has already suffered losses. It has spent about $71 million on the cryptocurrency, giving up an average of $51,056 for each coin.
Jaime Reusch stressed that
El Salvador is already experiencing liquidity problems. Its financial capacity is weakening, and investment in BTC is only aggravating the country's economic situation.
The yield on El Salvador's government bonds has soared above 35% p.a. and the country's obligations are due in January 2023. The record high rate indicates that
financial markets do not believe the Latin American country's authorities may ever be able to pay their investors.
