Spain and France’s Inflation Rate Highest in Four Decades

While the US inflation rate has slowed, elsewhere it is quite different. Both France and Spain have seen their inflation rates rise to levels not seen for nearly 40 years. These figures are alarming according to official statistics.

Both countries are seeing an increase in crypto adoption. Will the financial strains that are coming have negative consequences for the crypto industry?

Spain and France share a Tale

Spain’s July inflation rate was 10.8%, slightly higher than market expectations of 10.6%. According to official data, this figure is the highest recorded since 1984. Inflation was identified by the Bank of Spain in a recent report. It is impossible to stop institutional instability from triggering.

Inflation can drive crypto adoption in the Iberian country. Despite Spain’s low adoption rate compared to other developing and developed economies, crypto has enjoyed a steady rise in popularity.

The National Securities Market Commission (CNMV), which reported earlier, has found that almost 7% of Spanish adults have made investments in crypto. To find out how much of the country’s 1,500 residents have invested in crypto, the Spanish regulator conducted a survey. This group consists of young, educated and well-paid individuals.

Regulator clarity in this space can also explain the uptrend. Spanish authorities consider digital assets legal investment. These tokens can also be sold to generate capital gains that are subject to a tax of between 19% and 23%

France has an identical story with its July inflation rate of 6.1%. This was 1985, when the inflation rate was at its highest. Experts believe that inflation has been steadily increasing for more than a decade, and that the pandemic only accelerated it.

Bitcoin and the European Crisis

If Bitcoin and crypto can be used as a hedge against rising prices, there is increasing uncertainty. A weakening euro, and a strengthening dollar could cause serious problems for Europeans, given the volatility of the last few months.

The future of cryptocurrency and Bitcoin can be overcome by the rising gas prices and impending recession caused by the current financial system. The persistent energy crisis in Europe is threatening to create a bear market.

Russia may impose gas cuts that could lead to economic crisis in certain countries of the region.

CryptoPotato’s first article, Spain and France Inflation Rates Highest in Four Decades, appeared first on CryptoPotato.

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Marla Brooks

Marla Brooks – Financial Analysis My name is Marla Brooks, and I am the mainstream behind the”observednews.com”  for the powerful and most delicate insights into the latest activities in the financial analysis category. I started my journey as an independent financial consultant. I had approximately nine years of experience in this field. I am free soul so; my passion for exploring the world has taken me to the nations across the globe and given me the chance to report for a portion of the best news associations. Currently, I am a full-time editor as experienced in finance and started to use my abilities.

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