Florida plans to invest $1.85 billion from its pension fund into Bitcoin to take the lead in using cryptocurrency, with support from state leaders and the Florida Blockchain Business Association.
Florida is planning to invest $1.85 billion from its state pension fund into Bitcoin, aiming to lead in cryptocurrency adoption. Backed by the Florida Blockchain Business Association (FBBA) and pro-crypto leaders, this move could change how states use digital assets in their financial plans.
Florida to invest $1.85 billion in Bitcoin
Florida’s $185.7 billion pension fund, the fourth largest in the U.S., has already invested in crypto. Samuel Armes, head of the FBBA, suggests using 1% of the fund to create a Bitcoin reserve, offering financial diversity and exposure to the growing crypto market.
With a $116.5 billion budget surplus expected in 2024-2025, allocating 1% (about $1.16 billion) could further boost Florida’s role in Bitcoin adoption.
Florida is going to launch a strategic Bitcoin reserve, and here’s how we’re going to do it 👇
Florida has a very good chance of creating a strategic Bitcoin reserve this session, which starts in Q1 of 2025.
Here’s what you need to know:
The Speaker of the Florida House, Danny… pic.twitter.com/JJRNU1V7ZI
— Samuel Armes (@samuelarmes) December 3, 2024
Governor Ron DeSantis and other influential state leaders have played a pivotal role in advancing Florida’s crypto initiatives.
State officials, including Florida House Speaker Danny Perez and Senate President Ben Albritton, have actively supported Bitcoin-focused legislation to protect the state from the potential negative impacts of CBDCs.
Florida crypto investments
Florida has been interested in crypto for some time, already holding $800 million in crypto investments. CFO Jimmy Patronis has encouraged pension fund managers to consider adding Bitcoin to the state’s investment portfolio, stressing the importance of preparing for the growth of digital currencies.
“Crypto’s not going anywhere. It will continue expanding, and we’d be foolish not to harness its opportunities there,” said Patronis.
Florida’s plan fits into a larger trend in the U.S. to include Bitcoin in financial systems. President-elect Donald Trump has promised to keep the U.S. government’s Bitcoin holdings, worth about $20 billion, showing support for the cryptocurrency sector.
Florida’s plan to invest in Bitcoin has raised some concerns. Critics like Charles Bobrinskoy from Ariel Investments call Bitcoin a “momentum-driven bubble” and warn about its unstable price and lack of real value. However, Florida believes Bitcoin can be a good long-term investment and a safer option against traditional financial risks.
If Florida’s plan works, it could make the state a leader in using digital assets in state investments. This could encourage other states to invest in Bitcoin as well.
Florida’s $1.85 billion Bitcoin investment from its pension fund marks a major step in state-level crypto adoption. Backed by strong political support, it signals a shift toward blockchain technology in government investments.
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