Florida Senator Joe Gruters Introduces a Bill Proposing the Investment of Part of the State's Funds in Bitcoin and Other Digital Assets to Counter Rising Inflation

It follows a string of other US states recently moving toward the same goal.

Florida Republican Senator Joe Gruters has proposed that a portion of the state's funds be invested in Bitcoin (BTC) and other digital assets to counter rising inflation. This move comes as several other US states have taken steps toward the same goal.

In a bill introduced to the Florida Senate on Feb. 7, Gruters stated that the state should have access to instruments like Bitcoin to protect against inflation. He added that inflation has eroded the purchasing power of assets held in state funds managed by the chief financial officer.

Highlighting the adoption of Bitcoin by major asset management firms like BlackRock, Fidelity, and Franklin Templeton, Gruters proposed that the chief financial officer be permitted to invest Bitcoin across various funds in Florida.

According to the bill, the chief financial officer would be authorized to invest in Bitcoin through the state's general reserve fund, the budget stabilization fund, and various agency trust funds. However, he stipulated that Bitcoin holdings in any account should be capped at 10%. In comparison, a recent proposed bill in Wyoming would limit allocations to no more than 3%.

This development comes just months after Florida's chief financial officer, Jimmy Patronis, wrote a letter urging the Florida State Board of Administration to consider adding Bitcoin to the state's retirement funds investments.

In a letter dated Oct. 29, Patronis stated that Bitcoin is often referred to as “digital gold” and could help diversify the state's portfolio, providing a secure hedge against the volatility of other major asset classes.

A day before Gruter's filing, Kentucky became the 16th US state to introduce legislation aimed at establishing a Bitcoin reserve.

The bill, KY HB376, was introduced by Kentucky State Representative Theodore Joseph Roberts on Feb. 6. If passed, it would authorize the State Investment Commission to allocate up to 10% of excess state reserves into digital assets, which include Bitcoin.