Florida CFO Urges State Pension Fund to Consider Adding Bitcoin, Aligning with DeSantis's Anti-CBDC Stance

Florida Chief Financial Officer Jimmy Patronis has urged the State Board of Administration (SBA) to consider adding Bitcoin to the state pension funds.

Florida Chief Financial Officer (CFO) Jimmy Patronis has sent a letter to the State Board of Administration (SBA) urging them to consider adding Bitcoin to the state pension funds.

In the letter, Patronis highlights Bitcoin’s role as “digital gold” and how it could diversify the state's portfolio while offering a protective hedge against the volatility of other major asset classes. He stresses that protecting the financial stability of Florida’s pension funds for teachers, police officers, and firefighters requires securing the best possible returns, and argues that Bitcoin could be a strategic addition, presenting a compelling opportunity within the crypto sector.

The CFO points out that his proposal aligns with Governor Ron DeSantis's stance against central bank digital currencies (CBDCs), which contrasts with the decentralized nature of Bitcoin and other cryptocurrencies.

“It is the antithesis of a central currency, providing decentralized digital currencies managed on blockchain technology, not issued or controlled by any government agency,” Patronis said.

In light of this, Patronis has asked the SBA to prepare a report that analyzes the feasibility, risks, and benefits of investing state retirement funds into Bitcoin. He suggests that this report will help lawmakers make informed decisions ahead of the next legislative session.

“The State Board of Administration maintains a Florida Growth Fund that allows for more innovative and emerging investments, and a Digital Currency Investment Pilot Program could be a perfect fit, offering potential benefits we cannot afford to overlook,” Patronis added.

As of January 2024, the Florida Growth Fund is authorized to allocate up to 1.5% of the Florida Retirement System Trust Fund toward high-growth investments. This fund invested around $998 million from 2022 through 2023.

Patronis also noted that other states, including Wisconsin and Michigan, have started investing a small percentage of their pension funds in crypto.

Earlier this year, the State of Wisconsin Investment Board invested $164 million to spot Bitcoin exchange-traded funds (ETFs) offered by Grayscale and BlackRock. Similarly, the State of Michigan Retirement System owns around 6.6 million shares in ARK 21Shares Bitcoin ETF (ARKB).

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