Puerto Rico is not often mentioned in a positive content when it comes to the financial sector. Neither is this story, unfortunately, as the country decided to default on its debt. But at the same time, the reason for doing so makes a lot of sense. All of this is still somewhat good news to push Bitcoin adoption in the country to new heights, though.
Defaulting on debt is never a good thing, particularly not for a region so deeply indebted as Puerto Rico. However, Governor Padilla feels it is more important to pay emergency personnel, teachers, and other critical needs is a top priority. In fact, he feels it is more important that paying back creditors who hold general obligation bonds.
Fourth Debt Default For Puerto Rico
This approach is a topic of substantial debate, though. While it is positive to see the government ensure residents have access to essential services at all times, t is only making the problems worse. With a US$800m payment to be made to creditors, a simple “no” will not suffice. Then again, the government only has US$350m on hand as we speak, and no means to raise the additional money overnight.