Florida Candidate Donalds Proposes Bitcoin Reserve, Citing 15,900% Gain

Florida governorship candidate Byron Donalds has proposed the establishment of a state Bitcoin reserve, positioning it as a strategic move to safeguard against inflation and the perceived weaknesses of federal monetary policy. In an interview, Donalds emphasized that Bitcoin, unlike other cryptocurrencies, has demonstrated long-term value appreciation, rising from $500 in 2015 to over $80,000 today. He compared Bitcoin to gold, highlighting its scarcity and potential as a store of value.

Donalds criticized the Federal Reserve’s monetary policies, asserting that excessive money printing has eroded the strength of the US dollar. He argued that a Bitcoin reserve could provide long-term value for Florida, especially given Congress's failure to control spending. He suggested that the reserve could be funded through existing state surpluses, avoiding the need for new tax revenue. Donalds likened the idea to pension funds investing in securities and strategic oil reserves, suggesting that Bitcoin could serve as a financial hedge for the state.

Donalds’ proposal comes amid a broader trend of states considering Bitcoin as a reserve asset. In late 2024, Pennsylvania introduced legislation to allocate up to 10% of its general and rainy-day funds into Bitcoin. More than 20 other states have proposed similar legislation, with Texas being the furthest along in adopting it fully. Some states, however, have decided to forgo the reserve for now. While Florida has yet to take concrete steps toward establishing a Bitcoin reserve, Donalds’ proposal indicates growing interest among policymakers in digital assets as part of long-term financial planning. The outcome of the state’s upcoming gubernatorial race may determine whether this initiative gains traction.