Florida CFO Urges State Board to Evaluate Crypto Investments for Public Pension Funds

Florida’s Chief Financial Officer has sent a request to the State Board of Administration seeking a feasibility report for the potential to invest a portion of the state’s retirement funds in crypto, namely Bitcoin.

“Bitcoin is often called ‘digital gold,’ and it could help diversify the state’s portfolio and provide a secure hedge against the volatility of other major asset classes,” Florida’s Jimmy Patronis wrote in a letter on Tuesday. 

The request comes as Bitcoin climbed to a near five-month high on Tuesday, driven by market sentiment surrounding the U.S. presidential election. With former President Donald Trump pledging favorable crypto policies, traders expect the election results to trigger sharp price swings. 

In the letter, Patronis echoed remarks former President Donald Trump made in July at the Bitcoin 2024 conference in Nashville. At the time, Trump proposed creating a national stockpile of Bitcoin using digital assets seized through law enforcement actions.

“If elected, it will be the policy of my administration to keep 100% of all the bitcoin the U.S. government currently holds or acquires into the future,” Trump said at the event, adding the funds would serve as the “core of the strategic national bitcoin stockpile.”

The Florida CFO proposed how the SBA should consider launching a Digital Currency Investment Pilot Program as part of the Florida Growth Fund to test the viability of crypto in Florida’s pension system. 

“This program could be a perfect fit, offering potential benefits we cannot afford to overlook,” he added.

The Florida Growth Fund initiative stems from the Florida Technology and Growth Act of 2008. The act allows the SBA to invest up to 1.5% of Florida Retirement System Pension Fund assets in technology and growth enterprises with a significant presence in Florida.

Patronis also aligned his initiative with Florida Governor Ron DeSantis’s legislation opposing Central Bank Digital Currencies, describing crypto as the opposite of centralized financial control. 

“Crypto is the antithesis of a central currency, providing decentralized digital currencies managed on blockchain technology, not issued or controlled by any government agency,” Patronis noted.

Florida has shown consistent interest in promoting crypto adoption under the leadership of Governor Ron DeSantis. In 2022, DeSantis proposed allowing businesses to pay state taxes in Bitcoin as part of his efforts to position Florida as a crypto-friendly state. 

“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, becomes particularly compelling,” said Patronis. 

The executive’s proposal mentions similar initiatives in other states. Michigan, Wisconsin, Arizona, and Jersey City have already taken steps toward incorporating crypto into their pension funds.

Wyoming and Nebraska also have established crypto-friendly regulations to attract blockchain businesses. Patronis urged that Florida must explore similar strategies, asking the SBA to complete the report before the next legislative session.

Edited by Sebastian Sinclair