Florida’s Chief Financial Officer, Jimmy Patronis, has formally requested that the state’s pension fund managers explore the feasibility of investing in Bitcoin, positioning the state to potentially adopt BTC as a strategic reserve asset. In a letter dated October 29, 2024, addressed to Chris Spencer, Executive Director of the Florida State Board of Administration (SBA), Patronis outlines his vision for integrating Bitcoin into the state’s investment portfolio.
Patronis’s proposal comes on the heels of former President Donald Trump’s recent speech on the Bitcoin 2024 conference, where Trump advocated for the US to determine a national stockpile of Bitcoin. “This comes because the Communist Party of China makes inroads daily into the crypto world to grab control over this emerging currency,” Patronis notes, referencing geopolitical motivations for embracing Bitcoin.
He further highlights Trump’s visionary lead. “Trump said he would establish a crypto presidential advisory council and create a national “stockpile” of Bitcoin using cryptocurrency the US government currently holds, mostly seized in law enforcement actions. I think this forethought and revolutionary considering from a successful businessman like President Trump must not be taken without any consideration,” Patronis writes.
Will Florida Adopt Bitcoin As Strategic Reserve Asset?
Florida’s CFO emphasizes that Florida’s robust economic standing—boasting a Triple-A bond rating for the fifth consecutive 12 months and record reserves—positions it well to pioneer revolutionary investment strategies. “If Florida were its own sovereign nation, it might be the sixteenth largest economy globally,” Patronis states.
Patronis also points to actions taken by other states as precedents. “Two other states, Wisconsin and Michigan, have seen it smart to take a position a small portion of their pension funds into cryptocurrency,” he wrote. Moreover, he mentioned Arizona’s legislative efforts to incorporate Bitcoin in state retirement funds and highlighted Wyoming and Nebraska as leaders in BTC mining and legislative frameworks designed to draw the industry, including provisions for chartering crypto banks.
Governor Ron DeSantis’s recent laws to combat Central Bank Digital Currencies (CBDCs) is cited as a protective measure for Floridians’ personal funds against “government overreach and woke corporate monitoring.” Patronis aligned this stance with the decentralized nature of Bitcoin, stating that “on its face, [Bitcoin] is the antithesis of a central currency, providing decentralized digital currencies managed on blockchain technology, not issued or controlled by any government agency.”
The core of Patronis’s argument centers on the potential financial advantages for Florida’s public servants. “When managing state pensions for firefighters, teachers, and cops, it’s also essential to prioritize the underside line and ensure the very best return on investment for Floridians,” he asserts.
He proposes that Bitcoin, also known as “digital gold,” could “help diversify the state’s portfolio and supply a secure hedge against the volatility of other major asset classes.” He adds, “The State Board of Administration maintains a Florida Growth Fund that enables for more revolutionary and emerging investments, and a Digital Currency Investment Pilot Program could possibly be an ideal fit, offering potential advantages we cannot afford to overlook.”
In his letter, Patronis requests a comprehensive report from the SBA on the “feasibility, risk, and potential advantages of directing a portion of state retirement system monies into digital asset classes.” He emphasizes the importance of this evaluation in informing lawmakers ahead of the subsequent legislative session. “There’s no telling what the longer term of [Bitcoin] might be, however it’s necessary that the State of Florida stays ahead of the curve when considering latest investments and providing the very best returns for Floridians,” he concludes.
At press time, BTC traded at $72,467.
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