Florida Proposes Bitcoin Investment to Combat Inflation
1min read Florida Senator Joe Gruters has proposed a bill that would allow the state to invest a portion of its funds in Bitcoin and other digital assets. The bill, introduced on February 7, aims to counter rising inflation by providing the state with access to tools such as Bitcoin to protect against inflation.
Gruters highlighted the growing institutional adoption of Bitcoin by major asset management firms such as BlackRock, Fidelity, and Franklin Templeton, as well as its increasing acceptance as an international medium of exchange. He suggested granting Florida's chief financial officer, Jimmy Patronis, permission to invest Bitcoin across various funds in the state, with a cap of 10% on Bitcoin holdings in any account.
This proposal comes months after Patronis wrote a letter urging the Florida State Board of Administration to consider investing in Bitcoin in the state's retirement funds. In the letter, Patronis noted that Bitcoin is often referred to as "digital gold" and could help diversify the state's portfolio and provide a secure hedge against the volatility of other major asset classes.
Florida's proposal is part of a growing list of US states introducing legislation aimed at establishing a Bitcoin reserve. Just a day before Gruters' filing, Kentucky became the 16th US state to introduce such legislation. The bill, KY HB376, would authorize the State Investment Commission to allocate up to 10% of excess state reserves into digital assets, including Bitcoin.
