States like Wisconsin and Michigan have begun incorporating crypto assets into their public pension investment portfolios. Now, Florida is considering a similar path, with its Chief Financial Officer, Jimmy Patronis, advocating for the inclusion of Bitcoin
On October 29, Patronis presented the idea in a letter to Chris Spencer, the executive director of the Florida State Board of Administration (SBA). The SBA manages more than 30 funds, most notably the Florida Retirement System Trust Fund, which held approximately $205 billion in assets as of September 30.
He urged an evaluation of the feasibility, risks, and potential advantages of allocating a portion of the state's retirement assets to crypto. He requested that this report be prepared before the next legislative session on March 4, 2025.
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To streamline the proposed move into digital assets, Patronis recommended creating a "Digital Currency Investment Pilot Program" within the Florida Growth Fund. This fund can allocate up to 1.5% of the Florida Retirement System Trust Fund for investments. A report from January shows the fund put about $998 million into high-growth projects from 2022 to 2023, highlighting its adaptability to progressive investment approaches.
Patronis highlighted Bitcoin's reputation as "digital gold," emphasizing its potential to diversify the state's investment portfolio and serve as a secure hedge against volatility in other major asset classes.
He pointed out the importance of maximizing returns for Floridians, particularly when managing pensions for essential public servants like firefighters, educators, and law enforcement officers.
Additionally, Patronis mentioned that such a move would align with Governor Ron DeSantis' recent efforts to oppose central bank digital currencies (CBDCs), noting that cryptocurrencies represent the "antithesis" of centralized monetary systems.
Should Florida proceed with investing in digital currencies, it would join other forward-thinking states embracing cryptocurrency assets within their public pension funds.
In other news, El Salvador's decision to make Bitcoin legal tender continues to face criticism from the International Monetary Fund (IMF), which is asking the country to "limit public exposure" to the cryptocurrency.
