Florida Congressman Proposes Bitcoin Reserve to Safeguard Against Inflation
Byron Donalds, a US congressman and candidate for Florida’s governorship, has suggested that the state establish a Bitcoin reserve to protect against inflation and federal monetary policy. In an interview with Fox Business, Donalds emphasized the value of Bitcoin as a long-term asset.
Bitcoin as a Financial Strategy
Donalds proposed the creation of a Bitcoin reserve specifically, highlighting Bitcoin’s proven track record as a store of value. He pointed to Bitcoin’s significant price appreciation over the years, comparing it to gold in terms of scarcity and potential as a store of value.
He also criticized the Federal Reserve’s monetary policies, expressing concerns about the weakening of the US dollar due to excessive money printing. Donalds believes that having a Bitcoin reserve in Florida’s portfolio could provide long-term value, especially in the face of unrestrained government spending.
Funding and Implementation
Donalds suggested that the Bitcoin reserve could be funded through existing state surpluses rather than new tax revenue. He likened the concept to pension funds investing in securities, highlighting Bitcoin’s potential for long-term appreciation.
He compared the idea to strategic reserves of oil, emphasizing the importance of holding Bitcoin as a financial hedge for the state. While specifics on how the state would make such purchases were not provided, Donalds is optimistic about the benefits of including Bitcoin in Florida’s financial strategy.
Growing Trend Among States
Donalds’ proposal aligns with a growing trend among states considering Bitcoin as a reserve asset. Pennsylvania recently introduced legislation to allocate a portion of its funds into Bitcoin, and more than 20 other states have proposed similar measures.
Texas is leading the way in adopting Bitcoin reserves, while states like Utah have chosen to hold off for now. Although Florida has yet to take concrete steps towards establishing a Bitcoin reserve, Donalds’ proposal reflects a broader interest among policymakers in digital assets for long-term financial planning.
The outcome of Florida’s upcoming gubernatorial race may influence whether the Bitcoin reserve initiative gains traction in the state.
