August marks the ninth consecutive month of rising inflation for the Eurozone at 9.1%. In July, the official inflation numbers landed at 8.9%. The Eurozone consists of 19 countries, including Germany, France and Belgium.
This comes as the European Union (EU) faces a massive energy and gas crisis, largely as a result of the ongoing conflict in Ukraine. Current prices for daily necessities such as food, gas and electricity have soared across the continent.
Over the last month, energy prices made up the largest price push, up by an annual rate of 38.3%, While food, alcohol and tobacco all rose by an annual rate of over 10%.
Former EU member the United Kingdom also hit a 40-year-high inflation rate of 10.1% in July, as reported by the Organization of National Statistics (ONS).
Eurozone countries Estonia and the Netherlands both experienced noticeable inflation spikes of 2% up from July.
Related: How to preserve capital during inflation using cryptocurrencies?
Florian Glatz, an EU-based lawyer specializing in blockchain technology, co-founder of the German Blockchain Association and member of the EU Crypto Initative, told Cointelegraph:
“Europe is facing historic challenges, with inflation eroding away the economic security of middle and lower income households.”
Moreover, Glatz believes the crypto industry has been warning global governments that current monetary and economic systems “don‘t hold up to the challenges” at hand.
Among those who have already adopted crypto, it’s often seen as a hedge against inflation. Though, for this to work, the crypto community must continue to push for mass adoption and proper implementation.
Glatz says the EU needs to become relevant in the digital economy to present a better value proposition for the financial future of its people.
“We need a new deal for EU citizens that is powered by financial inclusion, opportunities in new digital markets and the desire to make Web3 the long-awaited Digital Revolution made in Europe.”
This comes as the European Central Bank released its guidelines on licensing digital assets, such as cryptocurrencies, on Aug. 17.