Florida to Explore Bitcoin Inclusion in State Pension Funds

Florida Chief Financial Officer and Fire Marshal Jimmy Patronis has proposed examining the feasibility of investing the state’s pension funds in Bitcoin and other cryptocurrencies. In a letter to Chris Spencer, Executive Director of the State Board of Administration (SBA), Patronis emphasized that Bitcoin, often referred to as “digital gold,” could help diversify the investment portfolio and safeguard it against the volatility of traditional 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

Proposal Highlights

Patronis has urged the SBA to conduct a detailed analysis of the “feasibility, risks, and potential benefits” of digital asset investments ahead of the Florida legislative session scheduled for March 5, 2025. The SBA oversees more than 30 funds with assets totaling approximately $205 billion.

The proposal includes launching a pilot program through the Florida Growth Fund, which can allocate up to 1.5% of the State Retirement System Trust Fund. Last year, the Growth Fund financed $998 million in projects supporting high-growth companies.

“Managing pensions for firefighters, teachers, and police officers requires ensuring the best return on investments. Cryptocurrencies like Bitcoin could provide compelling opportunities for these funds,” Patronis stated.

Alignment with Florida’s Policy

Patronis noted that the initiative aligns with the policies of Florida Governor Ron DeSantis, who opposes the adoption of a central bank digital currency (CBDC), citing its conflict with the decentralized nature of cryptocurrencies.

Broader Context

In May, the Wisconsin State Investment Board invested $163 million in spot Bitcoin ETFs for its pension and trust funds, marking a significant step in integrating digital assets into traditional financial systems.