The rating agency said that the law and other policy decisions had “weakened governance” and increased tensions with other countries.
El Salvador President Nayib Bukele's brothers reportedly presented the plan to foreign investors.
President Nayib Bukele made the announcement during a national address on Thursday.
El Salvador's Bitcoin Law will make BTC a compulsory currency and create costs for everyday taxpayers – hardly an advancement for freedom or free money.
Preached as a way to support an underbanked population, bitcoin will increase fees and risks for Salvadorans.
President Nayib Bukele is moving on multiple fronts to make El Salvador an unlikely bitcoin mecca.
The government would also create a trust that would enable the “instantaneous convertibility of bitcoin to dollars,” the bill said.
What does it mean for a country like El Salvador to adopt bitcoin as "legal tender"? It depends on whom you ask, says our columnist.
El Salvador's Nayib Bukele has built a career by courting the vulnerable while attacking the establishment. Now he wants bitcoin as legal tender.