Florida is stepping into the Bitcoin game. Senator Joe Gruters has introduced a bill to allow the state to invest in Bitcoin and other digital assets. The goal is clear—fight inflation and safeguard state funds.
Gruters thinks that Bitcoin can uses as an inflation hedge. “The state should have access to tools such as Bitcoin to protect against inflation,” he continued in introducing the bill on Feb. 7.
The proposal outlines the part of Florida’s Chief Financial Officer (CFO) in investing in BTC. The CFO is able to invest state money in Bitcoin. He aims to have a plan to safeguard state financial assets.
The bill allows BTC-backed loans and enables taxes and fees to be paid in digital currency. It converts any BTC payments into U.S. dollars and deposits them into the state’s General Revenue Fund.
Bitcoin global acceptance and institutional support
The bill highlights BTC’s global acceptance, noting that various sovereign entities and major financial firms, including BlackRock and Fidelity, see it as a hedge against inflation. With inflation eroding the value of traditional assets, the move aims to stabilize Florida’s financial reserves.
Bitcoin investments will have a 10% ceiling in any public fund to control risk. The state’s Bitcoin assets will have to be kept safe, either under the direct management of the CFO or approved custodians. Florida is not alone in its quest for digital assets. Several U.S. states have been developing similar legislation, searching for diversification out of traditional investments.
As BTC continues to gain acceptance in the overall marketplace, its use in state budgets could have an even larger role to play. Legislative review of the bill is ongoing. Once approved, Florida will have moved towards BTC integration in its financial system.
