Bitcoin experienced a 2.3% increase over the past 24 hours, reaching nearly $30,000, while investors awaited the release of July’s Consumer Price Index (CPI), a measure of inflation in the United States. This index is scheduled to be disclosed on Thursday.
The anticipated core inflation, which excludes the volatile prices of food and energy, is projected to be 0.4%, significantly lower than the rate observed a year ago. The decrease in inflation is expected to make it less likely for the Federal Reserve to implement rate hikes.
Oliver Rust, who serves as the head of product at the independent inflation data aggregator Truflation, forecasts that the CPI data will reveal a rise in inflation from 3% to 3.4% in the month of July.
According to Oliver Rust in a morning note, “Over the past three months, the rapid decline in inflation allowed consumers to regain their purchasing power, with wages growing at a faster rate than prices. This has resulted in the resurgence of rampant consumer spending, pushing up prices in the all-important food category.”
The Federal Reserve has taken a significant step in regulating banks’ involvement in the cryptocurrency realm, introducing a fresh program aimed at overseeing their crypto-related endeavors. The central bank has also reiterated the requirement for financial institutions under its jurisdiction to obtain approval before engaging in any digital asset activities.
The announcement, made on Tuesday, does not entail alterations to existing crypto banking regulations. Instead, it outlines the approach the Federal Reserve intends to adopt in supervising such activities. This approach involves the establishment of a “novel activities supervision program,” through which the central bank’s specialized experts in digital assets will collaborate with its regular supervisors to monitor dealings within the cryptocurrency sector.
Furthermore, the Federal Reserve has provided a more comprehensive explanation regarding the prerequisites for banks it supervises to secure preapprovals for their involvement with stablecoins.
In cases where a financial institution is involved in activities such as “issuing, holding, or transacting in dollar tokens to facilitate payments,” it must demonstrate to supervisors that it can carry out these activities in a secure and sound manner. Subsequently, formal approval from the Federal Reserve is required.
In a related development, cryptocurrency exchange Binance has achieved a significant milestone in its global expansion efforts. The exchange has obtained two licenses to operate in El Salvador, signifying a step forward in solidifying its legitimacy on an international scale. With these new licenses, Binance’s operational scope now spans 18 markets.
Binance revealed that the Central Bank of El Salvador has granted it a Bitcoin Services Provider license. Additionally, the Salvadoran National Commission of Digital Assets has issued a non-provisional Digital Assets Services Provider license to the company, as stated in an official communication from Binance.
“These licenses allow Binance to expand the products and services offered, including options tailored to the needs of our customers in El Salvador,” said Daniel Acosta, general manager of Binance’s Colombia, Central America, and Caribbean region, in a statement.