Florida’s Chief Financial Officer Jimmy Patronis has called for the inclusion of Bitcoin in state pension funds, advocating for a strategic reserve of the cryptocurrency. In a letter addressed to Chris Spencer, Executive Director of the State Board of Administration, Patronis requested a report on the feasibility, risks, and benefits of allocating a portion of state retirement funds into this digital asset class.
“This report should be provided to the Board of Trustees to better inform lawmakers before the next legislative session,” Patronis stated. He emphasized the need for Florida to remain proactive in exploring new investment opportunities that could yield the best returns for its residents.
In a press release on Tuesday, Patronis reiterated his view of Bitcoin as “digital gold,” highlighting its potential to diversify the state’s investment portfolio. He argued that Bitcoin could serve as a secure hedge against the volatility associated with other major asset classes.
Patronis’s initiative follows former President Donald Trump’s recent proposal for a national cryptocurrency stockpile. At the Bitcoin 2024 convention, Trump pledged to position the U.S. as a leader in the cryptocurrency space.
The Florida State Board of Administration oversees more than 30 funds, including the Florida Growth Fund, which is geared towards innovative and emerging investments. As of last month, the Florida Retirement System Trust Fund had approximately $205 billion in assets under management.
In his letter, Patronis suggested establishing a Digital Currency Investment Pilot Program within the Florida Growth Fund. “When managing state pensions for firefighters, teachers, and police officers, it’s crucial to prioritize the bottom line and ensure optimal returns for Floridians. This is where the potential for investing in a cryptocurrency like Bitcoin becomes particularly compelling,” he noted.
Florida Joins Other States in Considering Crypto for Retirement Funds
Florida’s move comes as other states explore similar initiatives. In May, the State of Wisconsin Investment Board (SWIB), the ninth largest pension fund in the U.S., publicly disclosed its $99 million Bitcoin investment, becoming the first pension fund to do so.
Additionally, Ohio state Rep. Steve Demetriou has introduced pro-crypto legislation aimed at requiring Ohio retirement systems to evaluate Bitcoin ETFs. Meanwhile, the State of Michigan Retirement System has also made headlines with a $6.6 million investment in the ARK 21Shares ARKB spot Bitcoin ETF.
