Florida Senator Introduces Bill to Invest Up to 10% of Public Funds in Bitcoin and Crypto #CriptoNews

Florida is looking to officially make Bitcoin (BTC) a part of its financial strategy. If a bill recently filed by Senator Joe Gruters is successful, the state will begin to invest its public funds in BTC. The plan is to use Bitcoin to protect the monetary reserves from inflation, and financial policies that could weaken the overall value of the state’s coffers.

Legislation passed in support of Bitcoin could be bullish for the crypto industry in the state, and could encourage businesses and merchants to integrate crypto payments with fiat. For instance, e-commerce platforms may add crypto to their official list of accepted payment methods for easier payments. Also, gamblers and casino lovers can enjoy anonymous play at no verification casinos supported by Bitcoin payments. These no-KYC (Know Your Customer) casinos are becoming increasingly popular because they offer great gaming options, exciting bonuses, and quick transactions while maintaining player anonymity via crypto.

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Titled SB 550, the bill states that inflation has already reduced the purchasing power of assets held and managed by the state’s Chief Financial Officer. The loss of value is detrimental to the state’s financial stability and economic security and negatively affects its residents and taxpayers. While Florida has no control over federal monetary policies that affect inflation, SB 550 states that Florida has a responsibility to protect its resources against inflation.

Gruters’ bill seeks to allow Florida’s Chief Financial Officer to invest in Bitcoin and cryptocurrencies. However, it does not specify other options.

“The Chief Financial Officer may include Bitcoin and other digital assets to serve as stores of value and provide a hedge against inflation, thereby protecting the purchasing power of state funds.”

In addition, the bill specifies that the CFO may invest in Bitcoin using money from The General Revenue Fund, Budget Stabilization Fund, and several others. However, it limits the amount of public funds invested in Bitcoin to a maximum of 10%.

SB 550 argues that Bitcoin is a good choice because its value has risen significantly enough that the asset has become an accepted medium of international exchange. The bill also notes that several countries now hold official Bitcoin reserves.

To protect Florida’s Bitcoin holdings, the bill requires that the custody solution applied meets multiple criteria. Firstly, the cryptographic private keys to the wallet must be exclusively held by a government entity, kept encrypted, and never accessible via a smartphone. The hardware containing these keys must be kept in “at least two geographically diverse, secure data centers.”

Additionally, the entity providing the tech product must ensure a multi-party governance structure for transaction authorization and a disaster recovery protocol that guarantees access whenever necessary. Furthermore, the product used to provide the service must undergo periodic penetration testing and code audits. Where problems or vulnerabilities are found, they must be fixed promptly.

If the bill passes and becomes law, Florida will join a growing list of US states interested in Bitcoin and the crypto sector in general. The day before Gruters introduced the bill, Kentucky became the 16th state to file legislation for crypto investment.

Kentucky Rep. Theodore Joseph Roberts filed KY HB376 to allow the State Investment Commission to invest in cryptocurrencies. Like in Florida, the bill also states a 10% maximum and does not specify which cryptocurrencies to be acquired. However, it states that the assets should be non-stablecoins that have had an average market capitalization of more than $750 billion over the last year. CoinMarketCap data shows that Bitcoin is the only crypto that meets this criterion, with a market cap of $1.9 trillion.

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