Florida’s Chief Financial Officer and Fire Marshal, Jimmy Patronis, has requested the state’s pension fund management agency to explore the possibility of investing in cryptocurrencies.
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
In a letter to Chris Spencer, Executive Director of the State Board of Administration (SBA), he noted:
“Bitcoin is often referred to as digital gold, and it can help diversify a portfolio and provide a reliable hedge against the volatility of other major asset classes.”
Patronis deemed it prudent for the SBA to prepare a report on the “feasibility, risks, and potential benefits” of investing a portion of the state’s pension system funds in cryptocurrencies. He suggested this be done by the next session of Florida’s legislature, scheduled for March 5, 2025.
The SBA manages over 30 funds with assets totaling approximately $205 billion.
Patronis believes a pilot project for digital currency investments could be launched through the Florida Growth Fund. This entity is authorized to utilize up to 1.5% of the Florida Retirement System Trust Fund. In 2022-2023, it financed high-growth businesses to the tune of $998 million.
“When managing state pensions for firefighters, teachers, and police officers, it is important to prioritize the bottom line and ensure the best return on investment. This is where the potential of cryptocurrencies, such as Bitcoin, appears particularly attractive,” the official stated.
He also indicated that the initiative aligns with Florida Governor Ron DeSantis’s policy of opposing the introduction of a digital dollar. The politician views CBDCs as the antithesis of decentralized cryptocurrencies.
Earlier in May, the Wisconsin State Investment Board disclosed investments in spot Bitcoin ETFs totaling $163 million. The agency manages funds for the jurisdiction’s pension and other trust funds.