Florida’s Chief Financial Officer, Jimmy Patronis, is advocating for the state’s retirement fund management agency to explore investments in Bitcoin . This initiative aligns with a broader trend among U.S. states looking to diversify their investment portfolios by including digital currencies. Patronis emphasized the potential of Bitcoin as a hedge against the market’s volatility, referring to it as “digital gold ” in a recent correspondence with the Florida State Board of Administration.
In his communication, Patronis called upon the agency to analyze the feasibility, risks, and rewards associated with allocating a portion of the state’s retirement funds into digital assets. He suggested that a report on this topic be delivered prior to the upcoming legislative session set for March 4, 2025. The Florida State Board of Administration manages over 30 investment funds, including the Florida Retirement System Trust Fund, which boasts approximately $205 billion in assets as of the end of September.
Patronis proposed the establishment of a “Digital Currency Investment Pilot Program” under the Florida Growth Fund, which is permitted to invest up to 1.5% of the Florida Retirement System Trust Fund. Recent reports indicated that this fund had directed nearly $998 million toward high-growth investments in the years 2022 and 2023. He stressed the importance of ensuring robust returns for state pension plans, especially those serving firefighters, teachers, and law enforcement.
Additionally, the CFO pointed out that embracing cryptocurrency investments would complement Governor Ron DeSantis’s recent stance against central bank digital currencies. Should Florida proceed with these investments, it would join other states like Wisconsin and Michigan that have already incorporated cryptocurrency into their retirement fund strategies, signaling a growing acceptance of digital assets at the state level.
