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- Florida’s SB 550 bill proposes allowing the state to invest up to 10% of various public funds in Bitcoin as an inflation hedge and financial autonomy tool.
- The proposal aligns with major investment firms like BlackRock and Fidelity viewing Bitcoin as an inflation hedge while joining other US states in considering crypto investments.
- Brazil reports significant growth in digital asset usage, particularly stablecoins for payments, while its B3 exchange expands crypto offerings to include Solana and Ethereum derivatives with Bitcoin options planned.
The Bitcoin Reserve narrative is gaining momentum as Florida joins in on the conversation. Republican Senator Joe Gruters has just introduced a bill called “SB 550: Investments of Public Funds in Bitcoin”, and it proposes that the state allocate some funds into the OG and other cryptocurrencies to combat inflation.
Related: Czech President Enacts Crypto-Friendly Law, Bitcoin Reserve Next?
Gruters’ pitch would allow the Floridian Chief Financial Officer to allocate to Bitcoin from the “General Revenue Fund, The Budget Stabilization Fund” and other trust funds. According to the proposal, there would be a cap on BTC ($96,909.81) holdings, with no more than 10% in each fund.
The proposal not only looks to offset inflation, it would also give the state more autonomy over its finances, with Bitcoin seen as an effective tool for achieving both.
Throughout its history, Bitcoin has greatly risen in value and is becoming more widely accepted as an international medium of exchange, and countries around the world, including the United States, hold Bitcoin within their treasury departments […] Bitcoin is viewed as a hedge against inflation by sovereign nations and prominent investment advisors, including BlackRock, Fidelity, and Franklin Templeton […] The state should have access to tools such as Bitcoin to protect against inflation.
Florida Bill SB 550 proposal
Florida is among a growing list of US states proposing similar bills recently. And internationally there is also a growing appetite for Bitcoin and Co, especially to the south of the United States.
Brazil Proves Popular for Crypto
A Reuters report from February 6 highlights the growing interest in South America, particularly in Brazil. The country’s central bank chief Gabriel Galipolo said that the country has seen a huge increase in the use of cryptocurrencies over the past three years, especially in stablecoins.
Galipolo told listeners at an event in Mexico City that stablecoins are mainly used for payments, causing regulatory concerns and oversight challenges.
Most of that is to buy things and to shop things from abroad. [This] maintains some kind of opaque vision for taxation or for money laundering.
Gabriel Galipolo, president of the Central Bank of Brazil Likely this high demand has driven decision makers to also cause the Brazilian stock exchange B3 to increase access to its crypto offerings, with the addition of options and futures trading for Solana and Ethereum. Gilson Finkelsztain, president of B3, said there are also plans to launch Bitcoin options.
Related: Is the XRP ($2.39) Run Over? Or Does A Price Below US $3 Present a Buying Opportunity?
Bitcoin futures have been trading in the country since April 2024 and have been popular in Brazil, with a monthly trading volume of R$5 billion (AU ($9.91)$1.37 billion).
The post Florida Senator Floats Bill for State Access to Bitcoin Investment While Brazilian Crypto Interest Grows appeared first on Crypto News Australia.
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