Florida Chief Financial Officer Jimmy Patronis has urged the State Board of Administration (SBA) to add Bitcoin to the state’s pension funds.
On October 29, Patronis sent a message letter to Chris Spencer, the executive director of the Florida State Board of Administration, highlighting Bitcoin’s role as “digital gold.” He highlighted how Bitcoin could diversify the state’s portfolio while providing a protective hedge against the volatility of other major asset classes.
Patronis emphasized 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 and offer an attractive opportunity within the crypto sector.
The CFO pointed out that his proposal aligns with Governor Ron DeSantis’ 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, offering decentralized digital currency managed on blockchain technology and not issued or controlled by any government agency.”
To this end, Patronis asked the SBA to prepare a report analyzing the feasibility, risks, and benefits of investing state pension funds in 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 enables more innovative and emerging investments, and a pilot program for digital currency investments could be a perfect fit and provide potential benefits that we cannot afford to miss.”
Beginning in January 2024, the Florida Growth Fund is authorized to allocate up to 1.5% of the Florida Retirement System Trust Fund to high-growth investments. This fund invested approximately $998 million between 2022 and 2023.
Patronis noted that other states, including Wisconsin and Michigan, have started investing a small percentage of their retirement 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 approximately $6.6 million worth of shares in ARK 21Shares Bitcoin ETF (ARKB).