Official announcement or confirmation from the Florida State Board of Administration or Florida government

Florida CFO Proposes 'Strategic Bitcoin Reserve' for State Pensions to Hedge Against Volatility

Oct 30, 2024, 06:55 AM

Florida's Chief Financial Officer, Jimmy Patronis, has urged the state's pension fund manager to consider investing in Bitcoin, proposing the creation of a 'Strategic Bitcoin Reserve' for state pensions serving teachers, firefighters, and police officers. In a letter to the State Board of Administration, which oversees Florida's $205 billion retirement fund, Patronis suggested that Bitcoin, often referred to as 'digital gold,' could diversify the state's portfolio and provide a hedge against market volatility, as it is not tied to traditional markets. If approved, Florida could join other states like Wisconsin and Michigan in incorporating cryptocurrency into pension fund investments. Patronis acknowledges that the proposal may face regulatory challenges but believes that adding Bitcoin to the pension funds could help protect retirement savings from inflation and the volatility of traditional asset classes.