Florida lawmakers suggest giving CFO power to invest state funds in Bitcoin
Two Florida lawmakers, State Sen. Joe Gruters and Rep. Webster Barnaby, have introduced legislation that would grant the chief financial officer the authority to invest state funds in Bitcoin and other digital assets. Their rationale for this move is rooted in the need to safeguard state resources against the erosive effects of inflation.
According to the bills filed by Gruters and Barnaby, the purchasing power of assets held in state-managed funds overseen by the chief financial officer has been steadily eroded by inflation. This erosion, they argue, compromises the value of the state’s reserves and poses a threat to the financial stability and economic security of Florida, its taxpayers, and residents.
Bitcoin, a digital currency introduced in 2009, enables direct online payments between parties without the involvement of traditional financial institutions. Some countries, like Norway, have already made significant investments in cryptocurrency. The value of Bitcoin surged by 119% in 2024, with the price surpassing $100,000 in December and continuing to fluctuate above and below that level.
A year ago, Bitcoin’s trading price stood at just over $47,000. The bills assert that Bitcoin has witnessed substantial value appreciation over time and is increasingly recognized as a global medium of exchange. Notably, several countries, including the United States, hold Bitcoin as part of their treasury reserves, viewing it as a hedge against inflation, a perspective shared by prominent financial advisors such as BlackRock, Fidelity, and Franklin Templeton.
If passed, the Florida bills would authorize the investment of Bitcoin from various state funds, including the General Revenue Fund, Budget Stabilization Fund, trust funds, state agency funds (including the judicial branch), and entities established by the state Constitution or legislation. However, the proposed legislation would impose a cap, limiting Bitcoin investment to no more than 10% of the total funds in any given account.
Florida is not alone in considering such measures. In Utah, for instance, the House of Representatives recently approved a Bitcoin bill by a slim margin of 38-34. The bill is currently awaiting consideration by the Senate, reflecting a broader trend among states exploring the potential benefits of incorporating digital assets into their investment portfolios.
