Florida governorship candidate proposes state Bitcoin reserve amid inflation concerns

Byron Donalds, a US congressman and candidate for Florida’s governorship, has proposed that the state establish a Bitcoin reserve, arguing that the digital asset could serve as a safeguard against inflation and federal monetary policy.

In an interview with Fox Business on March 10, Donalds suggested that Florida should hold Bitcoin as part of its financial strategy, differentiating it from broader crypto investments.

Donalds said:

“What I’m proposing in Florida is a Bitcoin reserve, not just a crypto reserve. Bitcoin has proven to be a holder of value over the long term.”

He pointed to Bitcoin’s historical price appreciation, noting its rise from $500 in 2015 to over $80,000 today. He likened Bitcoin to gold, emphasizing its scarcity and potential role as a store of value.

He also criticized the Federal Reserve’s monetary policies, arguing that excessive money printing has weakened the US dollar.

He said:

“With Congress failing to rein in spending, having a Bitcoin reserve as part of Florida’s portfolio could provide long-term value.”

Funding and implementation

When asked whether taxpayer dollars should be used to acquire Bitcoin, Donalds suggested that the reserve could be funded through existing state surpluses rather than new tax revenue.

He clarified that “these aren’t new tax dollars going out” but did not specify how the state would make such purchases.

Donalds compared the concept to pension funds investing in securities, arguing that Bitcoin, like traditional assets, has the potential for long-term appreciation. He also likened the idea to strategic reserves of oil, suggesting that holding Bitcoin could serve as a financial hedge for the state.

His suggestions come amid President Donald Trump’s recent executive order to establish both a Strategic Bitcoin Reserve and a Strategic Digital Asset Stockpile.

Growing trend

Donalds’ proposal follows similar moves by other states considering Bitcoin as a reserve asset. In late 2024, Pennsylvania introduced legislation to allocate up to 10% of its general and rainy-day funds into Bitcoin.

More than 20 other states have also proposed similar legislation, with Texas being the furthest along in adopting it fully. Meanwhile, some states, including Utah, have decided to forgo the reserve for now.

While Florida has yet to take concrete steps toward establishing a Bitcoin reserve, Donalds’ proposal signals growing interest among policymakers in digital assets as part of long-term financial planning. Whether the initiative gains traction may depend on the outcome of the state’s upcoming gubernatorial race.

Mentioned in this article