Florida CFO Jimmy Patronis proposes a "Strategic Bitcoin Reserve" for the state pension fund, urging the State Board of Administration to assess Bitcoin as a hedge and diversification tool.
Florida’s Chief Financial Officer, Jimmy Patronis, recently submitted a formal request to the State Board of Administration (SBA) seeking an evaluation of the feasibility of adding Bitcoin to the state’s pension fund. This proposal aims to assess the potential benefits and risks of diversifying Florida’s retirement system portfolio with Bitcoin, which Patronis referred to as “digital gold.”
Florida's CFO endorses a "Strategic #Bitcoin Reserve," urging state pensions to add Bitcoin as a hedge against market volatility. pic.twitter.com/IJgi8wirfF
— TFTC (@TFTC21) October 29, 2024
In a letter addressed to SBA’s Executive Director and CIO, Ash Williams, Patronis emphasized the strategic value of investing in Bitcoin for state pensions covering firefighters, teachers, and police officers. Patronis highlighted that, unlike central bank-issued currencies, Bitcoin’s decentralized nature makes it a potential hedge against volatility in traditional asset classes. “Bitcoin could help diversify the state’s portfolio and provide a secure hedge against the volatility of other major asset classes,” Patronis stated in his letter.
Patronis noted that similar initiatives have already been explored in states like Wisconsin, Michigan, and Arizona, each considering or implementing legislation that allows pension funds to allocate a portion of their assets to digital currencies. Drawing attention to Florida’s consistent financial stability—holding a Triple A bond rating for the fifth consecutive year—he urged the SBA to consider this proposal as part of an ongoing effort to deliver strong returns for Floridians in retirement plans.
Patronis also referred to recent legislative moves by Governor Ron DeSantis to limit central bank digital currency (CBDC) initiatives, aligning with Patronis’ call for a decentralized approach. “Governor DeSantis has taken steps to protect the finances of Floridians from government overreach... Bitcoin provides decentralized digital currencies not issued by any government agency,” he wrote.
The letter concluded with a call for the SBA to prepare a comprehensive report on the viability and implications of incorporating digital assets into the state’s portfolio, with the aim of arming the Board and lawmakers with sufficient information ahead of the next legislative session. The CFO underscored the need for Florida to “stay ahead of the curve” as Bitcoin gains traction.
