Florida Senator Proposes State Investments in Bitcoin to Combat Inflation

The bill, presented to the Florida Senate on February 7, aims to combat inflation’s impact on state reserves. If passed, it would empower State Chief Financial Officer Jimmy Patronis to allocate Bitcoin investments across multiple state accounts, including the general reserve fund, budget stabilization fund, and various agency trust funds.

Gruters explained that inflation has significantly eroded the value of assets managed within the state’s financial reserves. He pointed to Bitcoin as a better alternative, highlighting its growing acceptance as a global medium of exchange and its adoption by major asset management firms like BlackRock, Fidelity, and Franklin Templeton.

This legislative push follows similar initiatives across the United States. Wyoming recently introduced comparable legislation, though with a more conservative 3% cap on digital asset investments. Notably, Wyoming’s bill includes a provision that wouldn’t require the state treasurer to reduce investments if market movements push holdings above the limit.

The proposal builds on previous calls by CFO Patronis for the state to explore Bitcoin investments. In a 2024 open letter to Chris Spencer, head of Florida’s State Board of Administration (SBA), Patronis described Bitcoin as “digital gold” with the potential to diversify the state’s portfolio and hedge against asset volatility. 

He suggested a “Digital Currency Investment Pilot Program” under the Florida Growth Fund to evaluate Bitcoin’s feasibility. The SBA, managing over $205 billion in retirement funds, was urged to assess the risks and advantages of Bitcoin ahead of the legislative session in March 2025.

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