Florida senator proposes Bitcoin investment bill for state funds

Florida Senator Joe Gruters has introduced a bill proposing the investment of state funds in Bitcoin (CRYPTO:BTC) and other digital assets as a measure to counter inflation.

Gruters argued that inflation has reduced the purchasing power of assets held in state-managed funds.

He emphasised that Bitcoin could serve as a tool to protect against inflation, citing institutional adoption by major firms like BlackRock, Fidelity, and Franklin Templeton.

These firms have already recognised Bitcoin as a hedge against inflation, and the asset has gained value and global acceptance.

Gruters’ bill suggests that Florida’s Chief Financial Officer, Jimmy Patronis, be granted permission to invest in Bitcoin across various state funds, including the general reserve fund, budget stabilisation fund, and agency trust funds.

However, he proposed a cap of 10% for Bitcoin holdings in any account. In comparison, a similar bill introduced in Wyoming caps allocations at 3%.

This proposal comes just months after Patronis urged the Florida State Board of Administration to consider adding Bitcoin to the state’s retirement fund investments.

Patronis described Bitcoin as “digital gold” and emphasised its potential to diversify the state’s portfolio while providing a secure hedge against the volatility of traditional assets.

Florida’s move aligns with a growing trend in US states, with Kentucky recently introducing a similar proposal.

Kentucky’s bill, KY HB376, introduced on February 6 by State Representative Theodore Joseph Roberts, would authorise the State Investment Commission to allocate up to 10% of excess state reserves into digital assets, including Bitcoin.

 At the time of reporting, the Bitcoin (BTC) price was $97,039.02.