Florida Senator Joe Gruters has introduced a bill advocating for the state to invest part of its funds in Bitcoin and other digital assets. He believes such investments could help counteract inflation, aligning Florida with other states exploring similar strategies.
Bitcoin as a Hedge Against Inflation
Gruters emphasized the importance of Bitcoin in protecting state funds from inflation. He pointed out that major asset management firms, including BlackRock, Fidelity, and Franklin Templeton, have already adopted Bitcoin as a hedge. He also noted Bitcoin’s growing value and increasing global acceptance as reasons Florida should consider adding it to its investment portfolio.
Under the proposed bill, Florida’s chief financial officer, Jimmy Patronis, would be authorized to invest in Bitcoin through various state funds, including the general reserve fund and budget stabilization fund. However, the bill limits Bitcoin holdings to a maximum of 10% in any account. By comparison, Wyoming’s similar proposal caps cryptocurrency investments at 3%.
Growing Momentum for Bitcoin Reserves in U.S. States
Florida’s move comes just months after Patronis urged the Florida State Board of Administration to consider Bitcoin for state retirement fund investments. He described Bitcoin as “digital gold,” suggesting it could diversify the state’s portfolio and serve as a hedge against volatility in other major asset classes.
On Feb. 6, Kentucky became the 16th state to introduce legislation aimed at establishing a Bitcoin reserve. The bill, KY HB376, would permit the State Investment Commission to allocate up to 10% of excess reserves into digital assets, including Bitcoin, if approved.
