Florida’s Chief Financial Officer, Jimmy Patronis, has formally requested a feasibility study from the State Board of Administration (SBA) on potentially investing a portion of the state’s retirement funds in cryptocurrency, particularly Bitcoin.
“Bitcoin is often called “digital gold,” and it could help diversify the state’s portfolio and provide a secure hedge against the volatility of other major asset classes.” Patronis stated in his letter on Tuesday.
The request comes as Bitcoin surged to a near five-month high, fueled by investor sentiment around the U.S. presidential election. Former President Donald Trump’s pledge to implement pro-crypto policies has also amplified market speculation about price volatility tied to election outcomes.
In his letter, Patronis referenced Trump’s July comments at the Bitcoin 2024 conference in Nashville, where Trump advocated for establishing a national Bitcoin stockpile sourced from digital assets seized in law enforcement actions. “If elected, it will be the policy of my administration to keep 100% of all the bitcoin the U.S. government currently holds or acquires into the future,” Trump said in the event, describing it as “the core of the strategic national bitcoin stockpile.”
Patronis suggested that the SBA evaluate launching a Digital Currency Investment Pilot Program under the Florida Growth Fund to test cryptocurrency’s viability within the state’s pension system. “This program could be a perfect fit, offering potential benefits we cannot afford to overlook,” he emphasized.
The Florida Growth Fund initiative, launched under the Florida Technology and Growth Act of 2008, allows the SBA to invest up to 1.5% of the Florida Retirement System Pension Fund in technology-focused enterprises operating within Florida.
Patronis also aligned his proposal with Governor Ron DeSantis’s legislative stance against Central Bank Digital Currencies (CBDCs), noting that crypto represents “the antithesis of a central currency, providing decentralized digital currencies managed on blockchain technology, not issued or controlled by any government agency.”
Florida has actively promoted crypto adoption under Governor DeSantis, who in 2022 proposed allowing businesses to pay state taxes in Bitcoin, reinforcing Florida’s reputation as a crypto-friendly state.
“When managing state pensions for firefighters, teachers, and police officers, it’s also essential to prioritize the bottom line and ensure the best return on investment for Floridians. This is where the potential of investing in a cryptocurrency, like Bitcoin, becomes particularly compelling, ” Patronis added.
The proposal points to similar crypto investment initiatives in states like Michigan, Wisconsin, Arizona, and Jersey City, which have integrated cryptocurrency into pension funds. Additionally, Wyoming and Nebraska have enacted crypto-friendly regulations to attract blockchain-based businesses. Patronis urged the SBA to provide the report in time for the upcoming legislative session, highlighting the importance of exploring comparable strategies for Florida’s economic future.
