Florida Chief Financial Officer Jimmy Patronis has suggested that the agency that administers the state’s pension funds consider adding Bitcoin to its portfolio, which reflects a growing trend in the US.
On October 10, 29, Patronis wrote to Chris Spencer, executive director of the Florida State Board of Administration (SBA), that bitcoin, commonly referred to as “digital gold,” could offer a diversified and safer alternative to state pension fund investments.
Patronis urged the SBA to investigate the “feasibility, risks and potential benefits” of allocating a portion of the Florida Retirement System Trust Fund, worth about $205 billion, to digital assets.
The Florida Growth Fund Member also proposed a “digital investment pilot program,” which currently can invest up to 1.5% of trust fund assets in high-growth income, and last year, this was around $998 million.
Pointing to Bitcoin’s ability to deliver stable returns, Patronis said it could support Florida firefighter, teacher, and police pensions by reducing traditional asset volatility.
This proposal is in line with Florida Government Ron DeSantis’s stance against central bank digital currencies (CBDCs) is consistent, because Patronis stressed that cryptocurrency offers a decentralized alternative.
If Florida moves forward with a bitcoin economy, it will join states like Wisconsin and Michigan, which recently added crypto assets to their pension funds. In May, Wisconsin contributed $164 million to a bitcoin ETF through Grayscale and BlackRock, while Michigan put a similar amount into ARK 21Shares’ ETF in July.
Patronis has requested the SBA to deliver a report on the proposal before the state legislature’s next session on March 4, 2025.
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