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Florida Chief Financial Officer Jimmy Patronis recently sent a letter to the Florida State Board of Administration, pushing for the creation of a “strategic Bitcoin reserve,” previously announced by former President Donald Trump. Patronis also encouraged the state to invest pension funds in Bitcoin. This move places Florida at the forefront of crypto adoption among U.S. states, following similar actions by Wisconsin, Michigan, and Arizona.
Florida State Treasurer’s Pro-Bitcoin Move
In the letter addressed to Chris Spencer, Executive Director of the Florida State Board of Administration, Patronis emphasized Florida’s economic strength and innovative spirit. “Florida’s economy is in its prime, with a Triple A bond rating for the fifth year in a row, record reserves, and we are outpacing the country in nearly every key economic metric,” Patronis stated. He added that Florida would rank as the 16th largest economy worldwide if it were a sovereign nation.
Patronis cited recent comments from Republican Donald Trump at the Bitcoin 2024 convention, where Trump suggested the establishment of a “national stockpile of cryptocurrency.” The proposed national stockpile, according to Trump, would be filled using crypto assets seized in law enforcement actions.
He believes this move would help secure the United States’ position as a global crypto leader. Moreover, Patronis called Trump’s ideas “forethought and innovative thinking from a successful businessman” that should not be overlooked.
Highlighting Governor Ron DeSantis’ stance on crypto, Patronis noted the Governor’s efforts to shield Floridians from Central Bank Digital Currencies (CBDCs). In addition, he described crypto as “the antithesis of a central currency.”
BREAKING: Florida Treasurer Jimmy Patronis makes history with letter endorsing a ‘Strategic Bitcoin Reserve’ – Pushes state pensions to add Bitcoin.
This is a massive move for Bitcoin in the USA. We @SatoshiActFund are proud to have our work in Arizona cited in this letter. pic.twitter.com/Upd5nM414g
— Dennis Porter (@Dennis_Porter_) October 29, 2024
Furthermore, he added that decentralized digital currencies, such as Bitcoin, operate outside governmental control, aligning with DeSantis’ legislative action against CBDCs. This protection, he said, counters “globalist efforts to adopt a worldwide digital currency.”
Need for Crypto Pension Fund
Patronis proposed that the Florida Growth Fund, an initiative managed by the State Board of Administration that supports emerging investments, could incorporate Bitcoin to diversify the state’s pension portfolio. According to Patronis, Bitcoin is often likened to “digital gold,” a characterization he believes reflects its potential to act as a hedge against volatility in other asset classes.
“It could help diversify the state’s portfolio and provide a secure hedge against the volatility of other major asset classes,” Patronis wrote. Patronis also pointed to other states’ moves toward crypto adoption. Wisconsin, Michigan, and Arizona have all made strides in incorporating crypto into pension fund allocations.
Meanwhile, Wyoming and Nebraska have enacted legislation to attract crypto-related industries, including frameworks for chartering crypto banks. The letter concludes with a request for a feasibility report, asking the State Board of Administration to evaluate the potential benefits and risks of investing state retirement funds in crypto.
“As a Trustee over the State Board of Administration, please consider this letter as a request to the SBA to provide a report on the feasibility, risk, and potential benefits of directing a portion of state retirement system monies into digital asset classes,” Patronis wrote.
Dennis Porter, founder of the Satoshi Action Fund and a vocal Bitcoin advocate, first shared the update on social media. The announcement caught the attention of BTC maximalists quickly as the flagship’s crypto’s proce crossed the $72,000 mark lately. With the growing adoption by U.S. states, analysts foresee a BTC price rally incoming.