2 months ago
Florida Chief Financial Officer Jimmy Patronis has urged the State Board of Administration (SBA) to see adding Bitcoin to the authorities pension funds.
On Oct. 29, Patronis sent a letter to Chris Spencer, the enforcement manager of the Florida State Board of Administration, highlighting Bitcoin’s relation arsenic “digital gold.” He emphasized however Bitcoin could diversify the state’s portfolio portion offering a protective hedge against the volatility of different large plus classes.
Patronis stressed that protecting the fiscal stableness of Florida’s pension funds for teachers, constabulary officers, and firefighters requires securing the champion imaginable returns. He argued that Bitcoin could beryllium a strategical addition, offering a compelling accidental wrong the crypto sector.
The CFO pointed retired that his connection aligns with Governor Ron DeSantis’s stance against cardinal slope integer currencies (CBDCs), which contrasts with the decentralized quality of Bitcoin and different cryptocurrencies.
According to him:
“[Bitcoin] is the antithesis of a cardinal currency, providing decentralized integer currencies managed connected blockchain technology, not issued oregon controlled by immoderate authorities agency.”
Considering this, Patronis asked the SBA to hole a study analyzing the feasibility, risks, and benefits of investing authorities status funds into Bitcoin. He suggested that this study would assistance lawmakers marque informed decisions up of the adjacent legislative session.
Patronis added:
“The State Board of Administration maintains a Florida Growth Fund that allows for much innovative and emerging investments, and a Digital Currency Investment Pilot Program could beryllium a cleanable fit, offering imaginable benefits we cannot spend to overlook.”
As of Jan. 2024, the Florida Growth Fund has authorization to allocate up to 1.5% of the Florida Retirement System Trust Fund toward high-growth investments. This money invested astir $998 cardinal from 2022 done 2023.
Patronis noted that different states, including Wisconsin and Michigan, person started investing a tiny percent of their pension funds successful crypto.
Earlier this year, the State of Wisconsin Investment Board invested $164 cardinal to spot Bitcoin exchange-traded funds (ETFs) offered by Grayscale and BlackRock. Similarly, the State of Michigan Retirement System owns astir $6.6 cardinal shares successful ARK 21Shares Bitcoin ETF (ARKB).
The station Florida CFO advocates adding Bitcoin to authorities pension funds for strategical growth appeared archetypal connected CryptoSlate.
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