Jimmy Patronis, Florida’s Chief Financial Officer, has urged the Florida State Board of Administration (SBA) to consider investing in Bitcoin. He believes this move could enhance the state’s pension funds.
Establishing a Pilot Program
In his recent letter, Patronis proposed creating a “Digital Currency Investment Pilot Program.” He suggested allocating 1.5% of the Florida Retirement System Trust Fund to Bitcoin. This initiative aims to diversify the state’s investment portfolio.
Alignment with State Goals
Patronis emphasized that this proposal aligns with Governor Ron DeSantis’s stance against central bank digital currencies (CBDCs). He views cryptocurrency as a viable alternative for investors.
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Encouraging Feasibility Studies
On October 29, Patronis wrote to Chris Spencer, the executive director of the SBA. He requested a report on the feasibility and potential benefits of investing in digital assets. He hopes to receive this report before the next legislative session in March 2025.
The Case for Bitcoin
Patronis referred to Bitcoin as “digital gold,” highlighting its potential to diversify the state’s investment strategy. He believes it can provide a secure hedge against market volatility.
Current Management of Pension Funds
The Florida State Board of Administration currently manages 30 funds, including the Florida Retirement System Trust Fund, which has $205 billion in assets. This financial strength provides a solid foundation for exploring new investment opportunities.
Previous High-Growth Investments
In his letter, Patronis noted that the SBA had invested approximately $998 million in high-growth assets between 2022 and 2023. This history of strategic investments supports his call for exploring cryptocurrency.
Prioritizing Returns for Floridians
Patronis stressed the importance of maximizing returns for state pensioners, including firefighters, teachers, and police officers. Investing in Bitcoin could enhance these returns.
Following Other States’ Lead
If Florida adopts this Bitcoin investment plan, it will join states like Michigan and Wisconsin. These states have already incorporated crypto assets into their pension funds.
