Florida Chief Financial Officer Jimmy Patronis has urged the State Board of Supervisors (SBA) to consider adding Bitcoin to the state pension fund.
On October 29, Patronis sent a letter to Chris Spencer, executive director of the Florida Board of Supervisors, emphasizing Bitcoin's role as “digital gold.” He highlighted how Bitcoin can diversify a state's portfolio while providing a protective hedge against the volatility of other major asset classes.
Patronis emphasized the need to ensure the highest possible returns to protect the financial stability of Florida's pension funds for teachers, police officers and firefighters. He argued that Bitcoin could be a strategic addition and offer attractive opportunities to the cryptocurrency sector.
The CFO noted that his proposal is consistent with Governor Ron DeSantis' stance on central bank digital currencies (CBDCs) and contrasts with the decentralized nature of Bitcoin and other cryptocurrencies.
According to him:
“(Bitcoin) is the opposite of a central currency, offering a decentralized digital currency that is not issued or controlled by any government entity and is managed by blockchain technology.”
With this in mind, Patronis asked the SBA to produce a report analyzing the feasibility, risks, and benefits of investing state retirement funds in Bitcoin. He suggested the report would help lawmakers make informed decisions ahead of the next legislative session.
Patronis added:
“The State Board of Supervisors maintains the Florida Growth Fund to enable more innovative and emerging investments, and the Digital Currency Investment Pilot Program is a perfect fit and offers potential benefits that cannot be overlooked.” There is a sex.”
As of January 2024, the Florida Growth Fund has the authority to allocate up to 1.5% of the Florida Retirement System Trust Fund to high-growth investments. The fund invested approximately $998 million from 2022 to 2023.
Patronis noted that other states, such as Wisconsin and Michigan, have also begun investing a percentage of their pension funds in cryptocurrencies.
Earlier this year, the Wisconsin Investment Commission invested $164 million to identify Bitcoin exchange-traded funds (ETFs) offered by Grayscale and BlackRock. Similarly, Michigan Retirement System owns approximately $6.6 million worth of stock in the ARK 21Shares Bitcoin ETF (ARKB).
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