Florida CFO Pushes Bitcoin to State Pension Funds

Florida Chief Financial Officer (CFO) Jimmy Patronis wants to include Bitcoin (BTC) in state pension fund investments.

To that end, he has sent a formal request to Chris Spencer, the executive director of the Florida State Board of Administration, highlighting the need for a digital currency investment pilot program.

The CFO wants a Bitcoin feasibility study

In his letter, Patronis outlined the rationale for including Bitcoin in the state’s wallet. He pointed to Florida’s consistent Triple-A bond rating, record state reserves and an economy that could rank as the 16th largest in the world if it were a country.

According to him, these factors put the state in a great position to consider new investment strategies, with Bitcoin an excellent tool to buffer the volatility that is often present in traditional asset classes.

He suggested that adding the world’s largest and oldest digital asset to the state’s investment portfolio could provide a safeguard for key public workers by positioning their pensions against wider market instabilities.

“When managing state pensions for firefighters, teachers and police officers, it’s also essential to prioritize the bottom line and ensure the best return on investment for Floridians. This is where the potential of investing in a cryptocurrency, like Bitcoin, it becomes particularly compelling.”

The CFO asked Spencer and the State Board of Directors to evaluate the feasibility of integrating Bitcoin investments into Florida’s public funds. He stated that such an exploration would determine the risks and benefits associated with the asset and give lawmakers the essential information needed to make an informed decision before the next legislative session.

Proposal inspired by Donald Trump

To support his proposal, Patronis cited moves by states like Wisconsin and Michigan, which recently allocated portions of their pension funds to Bitcoin.

Wisconsin invested $164 million in Bitcoin cash ETFs offered by Grayscale (GBTC) and BlackRock (IBIT), which represents just 0.1% of its pension assets. Later, he added another 447,651 shares of IBIT as he announced that he had completely divested from Grayscale. Michigan also jumped on the bandwagon, buying shares in ARK 21’s local Bitcoin ETF.

Similar initiatives have also been launched in other states, including Arizona, where lawmakers are encouraging pension fund managers to include crypto assets in their portfolios.

In addition, the high-ranking state executive name-dropped Donald Trump as the inspiration for his proposal. He cited the Republican presidential candidate’s speech at the 2024 Bitcoin Conference in Nashville, Tennessee, where he introduced the idea of ​​a national strategic Bitcoin reserve and promised to push the United States to the forefront of the global crypto industry.

Patronis also pointed to Florida Governor Ron Desantis’ move to bolster the state’s pro-cryptocurrency stance by enacting laws against central bank digital currencies (CBDCs), which he suggested were the opposite of representing Bitcoin and other cryptocurrencies.

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