A senior financial official of the state of Florida, USA, is advocating for state pension funds to consider investing in cryptocurrency, calling Bitcoin a tool for hedging market volatility.
U.S. state officials are promoting Bitcoin as a safeguard for the stability of the public retirement system.
Chief Financial Officer and Fire Chief Jimmy Patronis, an elected statewide official and member of the Florida Cabinet responsible for the Department of Financial Services, is urging the State Board of Administration (SBA) to consider cryptocurrency investments for state pension funds.
Patronis sent a letter on October 29 requesting the SBA to assess the benefits, potential risks, and feasibility of allocating a portion of Florida's retirement assets to digital assets like Bitcoin. 'It is impossible to predict what the future of cryptocurrency will look like,' Patronis stated, emphasizing that Florida should 'get ahead' in exploring innovative investment options for public funds. To support his request, Patronis pointed to recent comments from former President Donald Trump, who proposed a national cryptocurrency initiative.
He wrote, 'Trump stated he would establish a presidential cryptocurrency advisory council and create a national 'bitcoin reserve' using the cryptocurrency that the U.S. government currently holds, largely seized in law enforcement actions,' he further explained:
I believe that the thoughtfulness and creative thinking of a successful entrepreneur like President Trump is not to be taken for granted.
Patronis also noted Governor Ron DeSantis's legislative actions aimed at protecting Florida residents from central bank digital currencies (CBDCs), intending to prevent government-controlled digital currency from becoming a widespread system.
The CFO of FL emphasized the importance of diversifying state pensions to ensure stable returns for Florida residents, particularly those working in public service roles. 'When managing state pensions for firefighters, teachers, and police officers, it is crucial to prioritize net returns and ensure the best investment returns for the people of Florida. This is where the investment potential in cryptocurrency, like Bitcoin, becomes particularly attractive,' he explained. Patronis added:
Bitcoin is often referred to as 'digital gold' and it can help diversify the state's investment portfolio and provide a safe hedge against the volatility of other major asset classes.
He suggested that the Florida Growth Fund could be expanded through a pilot digital investment program that he described as 'perfectly aligned, offering potential benefits that we cannot overlook.'
Patronis mentioned that other states, such as Wisconsin, Michigan, and Arizona, have moved to invest in cryptocurrency for state funds, while Wyoming and Nebraska have enacted frameworks to attract the cryptocurrency industry. He requested a detailed report from the SBA to help Florida lawmakers make informed decisions in the upcoming legislative session.
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