cryptoslate.com
Florida Chief Financial Officer Jimmy Patronis has urged the State Board of Administration (SBA) to consider adding Bitcoin to the state pension funds.
On Oct. 29, Patronis sent a letter to Chris Spencer, the executive director of the Florida State Board of Administration, highlighting Bitcoin’s role as “digital gold.” He emphasized how Bitcoin could diversify the state’s portfolio while offering a protective hedge against the volatility of other major asset classes.
Patronis stressed that protecting the financial stability of Florida’s pension funds for teachers, police officers, and firefighters requires securing the best possible returns. He argued that Bitcoin could be a strategic addition, offering a compelling opportunity within the crypto sector.
The CFO pointed 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.
According to him:
“[Bitcoin] is the antithesis of a central currency, providing decentralized digital currencies managed on blockchain technology, not issued or controlled by any government agency.”
Considering this, Patronis asked the SBA to prepare a report analyzing the feasibility, risks, and benefits of investing state retirement funds into Bitcoin. He suggested that this report would help lawmakers make informed decisions ahead of the next legislative session.
Patronis added:
“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.”
As of Jan. 2024, the Florida Growth Fund has authorization 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 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).