Jimmy Patronis, Florida’s Chief Financial Officer, has proposed adding Bitcoin to the state’s retirement funds, emphasizing the potential benefits of diversification and protection against traditional market volatility. In a letter to Florida State Board of Administration Executive Director Chris Spencer, Patronis argued that Bitcoin, often seen as “digital gold,” could secure state funds and enhance returns.
In his October 29 letter, Patronis highlighted other states, such as Wisconsin and Michigan, that have started investing portions of their pension funds in crypto assets. He suggests that Florida could follow suit, thereby bolstering both security and returns for retirees. By including Bitcoin, the state aims not only to protect but also to maximize retirement benefits for Floridians.
Bitcoin as an Alternative to Centralized Digital Currencies
Patronis advocates for Bitcoin’s decentralized nature, which he views as an advantage over central bank digital currencies (CBDCs). This aligns with Florida Governor Ron DeSantis’s stance against CBDCs, highlighting Bitcoin as a viable alternative to centralized digital assets.
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
Patronis has requested the State Board of Administration (SBA) to assess the potential risks, benefits, and feasibility of investing in digital assets. This evaluation is expected to provide lawmakers with greater insight into the topic ahead of the next legislative session. Patronis also suggested the SBA could establish a Digital Currency Investment Pilot Program under the Florida Growth Fund. According to a report released in January 2024, this fund has permission to allocate up to 1.5% of the Florida Retirement System Trust Fund to high-growth projects, which received approximately $998 million in investments between 2022 and 2023.
Other States Embrace Crypto in Pension Funds
The Michigan State Retirement System made a significant move in July 2024 by investing $6.6 million in ARK 21Shares’ Bitcoin ETF. In addition, Wisconsin committed $170 million to crypto assets through investments in BlackRock’s IBIT ETF and Grayscale’s GBTC. Patronis’s proposal reflects Florida’s interest in expanding its pension funds beyond traditional assets, putting Bitcoin in the spotlight for its potential role in state investment strategies.
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