In a recent press release, Florida’s Chief Financial Officer (CFO) Jimmy Patronis officially requested that the State Board of Administration (SBA) explore the feasibility, risks, and potential advantages of investing a portion of Florida’s state retirement funds into cryptocurrency, with a specific focus on Bitcoin.
Patronis’s letter, sent on 29 October 2024, highlighted Florida’s strong economic standing and underlined the state’s historical leadership in financial innovation, drawing parallels to recent national and international developments in the crypto space.
Patronis referenced former President Donald Trump’s proposal at the Bitcoin 2024 convention to create a national stockpile of Bitcoin aimed at positioning the U.S. as a leader in digital assets. Trump suggested using seized digital assets to establish a “crypto stockpile,” an idea that Patronis described as forward-thinking, particularly given what he characterized as China’s aggressive moves to control digital currencies. Patronis voiced his support for Trump’s vision, emphasizing the strategic value of holding digital assets in light of China’s influence in the cryptocurrency sphere.
The letter also aligns Patronis’s proposal with recent actions taken by Florida Governor Ron DeSantis. DeSantis recently signed legislation aimed at countering the adoption of Central Bank Digital Currencies (CBDCs), positioning Florida as a state resistant to government-issued digital currencies and centralized financial control. Patronis echoed this sentiment, describing cryptocurrency as the “antithesis” of centralized currency because it is decentralized and managed on blockchain technology without government oversight.
Addressing the potential financial advantages, Patronis suggested that adding Bitcoin to the state’s pension fund investments could provide a hedge against market volatility and diversify the state’s portfolio, calling Bitcoin “digital gold.” He pointed to Florida’s existing Florida Growth Fund, an investment vehicle that allows for innovative investments, suggesting that a “Digital Currency Investment Pilot Program” under this fund could be a valuable addition to the state’s portfolio, offering benefits that are too significant to ignore.
Patronis also referenced similar initiatives in other states, noting that Wisconsin and Michigan have begun integrating cryptocurrency into their pension funds, while Arizona’s state Senate recently advanced legislation encouraging crypto investments in state retirement funds. Wyoming and Nebraska have taken legislative measures to attract the cryptocurrency industry, enacting laws that support crypto mining and banking, providing a framework that has helped position them as leaders in the blockchain sector.
In his closing, Patronis formally requested that the SBA provide a comprehensive report on the feasibility, risks, and benefits of directing state pension funds into digital assets, with the goal of equipping Florida’s Board of Trustees and lawmakers with the necessary information to make informed decisions. Patronis underscored the importance of staying “ahead of the curve” with respect to new investment opportunities to ensure the best possible returns for Florida’s pensioners, including teachers, firefighters, and police officers.
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