8/1/25, 12:13 a.m. El Salvador Bank Bitcoin Risk to Depend on Adequacy of Regulation FITCH WIRE El Salvador Bank Bitcoin Risk to Depend on Adequacy of Regulation Thu 11 Nov, 2021 - 2:11 p. m. ET Fitch Ratings-New York/Monterrey/San Salvador-11 November...
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8/1/25, 12:13 a.m. El Salvador Bank Bitcoin Risk to Depend on Adequacy of Regulation FITCH WIRE El Salvador Bank Bitcoin Risk to Depend on Adequacy of Regulation Thu 11 Nov, 2021 - 2:11 p. m. ET Fitch Ratings-New York/Monterrey/San Salvador-11 November 2021: El Salvador’s banks do not currently have material direct financial or market risks from the Sept. 7, 2021 establishment of bitcoin (BTC) as a legal tender alongside the USD, as no products or services offered are currently denominated in BTC and there is no direct bank balance sheet exposure, Fitch Ratings says. Widespread adoption of BTC has been limited by its inherent price volatility, the domestic banking sector’s low financial inclusion and the lack of broad internet availability. If technological infrastructure, controls, and the regulatory and supervisory framework are not adequately developed or implemented, it could expose banks to greater operational, cyber, and money laundering risks. Additionally, the lack of tax on BT
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