EU Regulator Introduces Crypto Banking Rules And US Inflation Explodes

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Last Updated on 11 June 2021 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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Bitcoin is trading in the $35k to $40k range with no certainty as to where it would settle. In the past week, the world’s biggest cryptocoin has only moved about 1% according to the statistics over at CoinMarketCap.

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US Inflation At 5%

Over in the US, inflation is at its highest point of the past 13 years with prices bound to rise 5% year on year. At this rate, President Joe Biden will have to keep those stimulus cheques coming for ordinary working Americans. Last time that stimmy was sent out, crypto exchanges saw an uptick in new accounts being opened and money invested directly into Bitcoin.

Speaking in the Wall Street Journal, Gus Faucher, chief economist at PNC Financial Services Group, explained that the expectation (or hope) was still that:

This is part of the dislocation from the reopening, and I would expect that…inflation will settle down later this year. When you take a step back and look broadly at inflation throughout the economy, there are lots of areas where prices move very slowly, and it’s going to take a lot to get a sustained acceleration beyond these temporary factors.

Basel bends to crypto

Meanwhile the Bank for International Settlements Basel Committee, an European regulatory agency, has by now admitted that there is no turning away from crypto anymore. As it acknowledges the cryptosphere will continue to grow in the coming years, the Committee is now attempting to place much-needed rules around EU banks being allowed to hold various cryptocurrencies.

This could further boost adoption in Europe.