Florida’s Chief Financial Officer, Jimmy Patronis, has formally requested the State Board of Administration (SBA) to consider including Bitcoin in state pension funds.
Patronis emphasized Florida’s position as what would be the 16th largest economy globally if it were a sovereign nation.
In his detailed letter to SBA Executive Director Chris Spencer, Patronis talks about Florida’s economic strength and the strategic importance of cryptocurrency investments.
There’s no telling what the future of #cryptocurrency will be, but FL must stay ahead of the curve on getting the best returns for Floridians. Today, I sent a letter to @FloridaSBA requesting a report on digital currencies. #BTC #Bitcoin
➡️ Read more: https://t.co/4JBL6WBtq1
— Jimmy Patronis (@JimmyPatronis) October 29, 2024
Florida CFO talks about necessity of best return on investments
“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 wrote in his letter dated October 29, 2024.
The CFO highlighted Florida’s impressive economic credentials. This includes its Triple A bond rating for the fifth consecutive year, record reserves, and leading position in nearly every key economic metric.
He referenced Florida’s pioneering engagement in various fields, including space travel and FinTech, as evidence of the state’s innovative approach to economic development.
The letter specifically addressed recent developments in the cryptocurrency space. Patronis highlighted President Trump’s proposal at the Bitcoin 2024 convention to establish a national “stockpile” of Bitcoin using cryptocurrency currently held by the U.S. government from law enforcement actions.
Patronis also noted Governor Ron DeSantis’s efforts to protect Floridians’ personal finances from government overreach and excessive monitoring.
The statement was regarding DeSantis’s actions, particularly regarding Central Bank Digital Currencies (CBDCs).
Patronis called Bitcoin “digital gold”
Patronis proposed using the existing Florida Growth Fund to establish a Digital Currency Investment Pilot Program.
He specifically referenced Bitcoin as “digital gold.” In addition, he suggested that it could help diversify the state’s portfolio and provide a hedge against the volatility of other major asset classes.
The letter detailed how other states have already moved forward with cryptocurrency investments.
Patronis spoke about how Wisconsin and Michigan have invested portions of their pension funds in cryptocurrency.
In addition, he highlighted Arizona’s state Senate’s advanced efforts to add crypto to state retirement funds.
The Florida CLO also spoke about Wyoming and Nebraska and how they have enacted legislation to attract the crypto industry.
The CFO formally requested the SBA to provide a report examining the feasibility, risks, and potential benefits of directing state retirement system funds into digital asset classes.
Patronis wants Florida to stay ahead of the curve
Patronis emphasized that while the future of cryptocurrency remains uncertain, it’s crucial for Florida to stay ahead of the curve in considering new investments and providing optimal returns for Floridians.
The letter particularly stressed the importance of protecting state pensions for public servants, including firefighters, teachers, and police officers.
The request comes at a time when Florida continues to outpace the country in nearly every key economic metric. Patronis also suggested that cryptocurrency investment could further strengthen the state’s financial position.
His letter emphasized the contrast between decentralized cryptocurrencies and CBDCs. Patronis noted that crypto represents the antithesis of central currency control.
The letter concludes by emphasizing the importance of staying ahead of financial innovation while maintaining prudent investment strategies for state pension funds.
The formal request for a feasibility report comes at a time when Bitcoin had rallied as high as $73,577, just $200 away from its all time high of $73,750.
Bitcoin surged over 8% in the last seven days. In comparison to other top coins, Bitcoin has showcased the strongest momentum as the global crypto market has reached $2.44 trillion.
According to CoinMarketCap data, the total crypto market cap was up by 1.5% at press time in the last 24 hours.
