Florida CFO Wants Bitcoin Included in State Pension Fund Investment Plan
Florida’s Chief Financial Officer, Jimmy Patronis, has now asked that Bitcoin be included in the current portfolio of the state’s pension fund. In a letter dated October 29, Patronis called on the Florida State Board of Administration to consider the value of Bitcoin as a complementary addition to the state’s retirement investment portfolio assets with a focus on diversification against volatile traditional markets. Dubbed “digital gold” by proponents, the resiliency and capped supply of Bitcoin make it a strategic hedge against inflation and market volatility that align with the goal of securing Floridians’ retirement funds.
Bitcoin as a Diversification Tool
Patronis believes the unique properties of BTC make the asset viable to counterbalance traditional market risks. He reasoned, in his letter to SBA executive director Chris Spencer, that Florida’s pension fund could be the benefactor of Bitcoin’s potential to serve not only as a financial safeguard but also an asset for long-term growth. Noting that states such as Michigan and Wisconsin have already moved to incorporate crypto assets into their pension portfolios, Patronis said BTC could elevate Florida’s financial game-plan and ensure the best possible returns for pensioners.
Bitcoin and Florida’s Anti-CBDC Stance
This also coincides with very recent Florida positions against CBDCs. The Governor of Florida, Ron DeSantis, has been vocal in dissolving the CBDCs. As stated by Patronis, the structure of BTC is inherently different from CBDCs, which a central bank operates. For him, BTC acts as an alternative to central currency, allowing financial freedom to investors, a fact highly welcomed in Florida.
Feasibility Report and Digital Currency Investment Pilot Program
To this end, Patronis has tasked the SBA to provide a thorough report on the “feasibility, risks, and potential benefits” of Bitcoin. The report would help policymakers make decisions on the implications of putting Bitcoin in the state’s investment portfolio. Patronis has also pushed to create a Digital Currency Investment Pilot Program within the Florida Growth Fund, which would invest as much as 1.5% of the state’s retirement trust in digital assets. He added that the pilot project will educate lawmakers on the pros and cons of adding cryptocurrency to state funds.
More Pension Funds Want to Jump into Crypto
This would reflect a wider trend among state pension funds, which have been dipping their toes deeper into investments in cryptocurrencies. Earlier in 2024, Michigan committed $6.6 million to Bitcoin ETFs, and Wisconsin has nearly $170 million in Bitcoin-related assets, including Grayscale GBTC shares. Should it be successful, the Sunshine State could be at the bleeding edge of what may become a sea change in how public retirement funds are investing in digital assets.
