Florida Chief Financial Officer Jimmy Patronis formally did so asked that the state’s pension fund managers are exploring the feasibility of investing in Bitcoin, potentially allowing the state to adopt BTC as a strategic reserve. In a letter dated October 29, 2024, addressed to Chris Spencer, executive director of the Florida State Board of Administration (SBA), Patronis outlined his vision for integrating Bitcoin into the state’s investment portfolio.
Patronis’ proposal comes on the heels of the former president Donald Trump’s recent speech at the Bitcoin 2024 conference, where Trump advocated for the United States to build a national stockpile of Bitcoin. “This is because the Communist Party of China is invading the crypto space every day to seize control of this emerging currency,” Patronis notes, referring to geopolitical motivations for embracing Bitcoin.
He further emphasizes Trump’s visionary lead. “Trump said he would establish a presidential crypto advisory board and create a national ‘stockpile’ of Bitcoin using cryptocurrency currently held by the US government, much of which is seized in law enforcement operations. I believe that this foresight and innovative thinking of a successful businessman like President Trump should not be taken for granted,” Patronis wrote.
Will Florida Adopt Bitcoin as a Strategic Reserve Asset?
Florida’s CFO emphasizes that Florida’s robust economic position – a Triple-A bond rating for the fifth consecutive year and record reserves – positions it well to pioneer innovative investment strategies. “If Florida were its own sovereign nation, it would be the 16th largest economy in the world,” Patronis said.
Patronis also points to actions by other states as precedents. “Two other states, Wisconsin and Michigan have seen fit to invest a small portion of their retirement funds in cryptocurrency,” he wrote. In addition, he mentioned Arizona’s legislative efforts to incorporate Bitcoin into state pension funds and highlighted Wyoming and Nebraska as leaders in BTC mining and legislative frameworks designed to attract the industry, including provisions for chartering crypto banks.
Governor Ron DeSantis’ recent legislation to fight against central bank digital currencies (CBDCs) is cited as a protective measure for Floridians’ personal finances against “government overreach and vigilant corporate monitoring.” Patronis aligned this position with the decentralized nature of Bitcoin, stating that “on its face, (Bitcoin) is the antithesis of a central currency, providing decentralized digital currencies that are managed on blockchain technology and not issued or controlled by any government agency.”
The core of Patronis’ argument revolves around the potential financial benefits for Florida officials. “When administering state pensions for firefighters, teachers and police officers, it is also essential to prioritize the bottom line and ensure the best return on investment for Floridians,” he said.
He proposes that Bitcoin, often referred to as “digital gold”, could “help diversify the sovereign’s portfolio and provide a safe hedge against the volatility of other major asset classes.” He adds, “The State Board of Administration maintains a Florida Growth Fund that enables more innovative and emerging investments, and a digital currency investment pilot program could be a perfect fit, with potential benefits we can’t afford to miss.”
In his letter, Patronis requests a comprehensive report from the SBA on the “feasibility, risks and potential benefits of devoting some of the state’s pension system money to digital asset classes.” He emphasizes the importance of this analysis in informing lawmakers ahead of the next legislative session. “There is no telling what the future of (Bitcoin) will be, but it is important that the state of Florida remains at the forefront of considering new investments and providing the best returns for Floridians,” he concluded.
At the time of writing, BTC was trading at $72,467.
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