While the inflation rates in the United States might be reducing, it is a different story elsewhere. Spain and France’s inflation has reached levels that have been untouched in the past four decades. The inflation rate in Spain has reached 10.8% while the inflation rate in France is currently 6.1%. These official figures are concerning because crypto adoption is on the rise in these two countries and the upcoming financial strains might negatively impact the crypto industry.

Spain’s annual inflation rate reached 10.8% in July 2022, a little above the estimated 10.6%. Official financial data shows that this is the highest inflation rate since 1984. In a recent report, the Bank of Spain found inflation to be one of the most serious problems plaguing the country. The looming inflation could trigger a wave of institutional instability.

However, the looming inflation has the potential to drive crypto adoption in the Iberian nation. Even though crypto adoption in Spain is not advancing as fast as in other developed and developing economies, the popularity of digital assets and collectibles in the country is following an upward trajectory.

France also has a similar inflation problem as the annual inflation percentage has already reached 6.1% in July. The last time that the inflation rate was this high was back in 1985. Many economic experts and financial observers believe that the inflation has been building for the best part of the past decade and the coronavirus pandemic just accelerated the negative inflation rise.

There is certainly a rising uncertainty if cryptocurrency and Bitcoin can prove to be an effective hedge against the rising inflation in Europe. Between the intense market volatility in Europe in the past couple of months, a steadily weakening euro and a slowly strengthening dollar has the potential to cause very catastrophic problems for the European continent.

Bitcoin and cryptocurrency can be a way out of high energy prices, looming gas shortages and the looming recession that the current financial structure has brought about. However, the protracted energy crisis in Europe is threatening a prolonged bear market. Things may become worse if Russia potentially cuts off their gas outflows. This could drive certain Russia-dependent countries into deep economic turmoil.

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