In his letter, referencing Donald Trump’s plans to create a national reserve of Bitcoin, Patronis asked the Florida Board of State Administration (SBA) to submit a report on the “feasibility, risks, and potential benefits” of investing a portion of state retirement system funds in digital assets. he wanted.

He stated that this report should be completed before the next legislative session, which will begin on March 4, 2025.

The SBA, which manages Florida’s pension funds, manages a portfolio of approximately $205 billion, including the Florida Retirement System Trust Fund (FRS).

Patronis suggested that the SBA could create a “Digital Currency Investment Pilot Program” under the Florida Growth Fund, which it uses to support assets with high growth potential.

This fund has made high growth investments worth approximately $1 billion in the 2022-2023 period and can allocate up to 1.5% of the FRS to such investments in accordance with the regulation.

Patronis noted Bitcoin’s potential to diversify the state’s portfolio and provide a hedge against volatility in other major asset classes. He argued that Bitcoin is seen as ‘digital gold’ and that such an asset could support the future performance of FRS.

Patronis’ proposal also supports Florida Governor Ron DeSantis’ efforts to limit central banks’ control over digital currencies (CBDC).

Patronis stated that unlike central currencies, crypto offers a decentralized structure, and that a crypto asset such as Bitcoin could therefore be a suitable option for Florida.

If the Florida SBA decides to invest in crypto, it would be following in the footsteps of several other states that have added crypto assets to state pension funds. For example, Wisconsin

The Investment Board (SWIB) reported in May that it had invested $164 million in spot Bitcoin ETFs offered by Grayscale and BlackRock, representing approximately 0.1% of its assets under management.

In July, the Michigan State Retirement System announced that it owned 110,000 shares in ARK 21Shares’ ETF; This investment represents approximately 0.003% of Michigan’s total assets under management.

While interest in crypto investments is rapidly increasing across the US, Florida’s move is considered a step towards accepting the value of non-traditional asset classes for pension funds. Bitcoin and other digital assets have attracted increasing interest from governments and large funds in recent years.

While some executives in different US states consider cryptocurrencies as a hedge against inflation, others think that such investments can play a leading role in the digital revolution.

In this vein, Patronis emphasizes that Bitcoin is not only an investment opportunity, but also an innovative option that has the potential to increase the returns of state pension funds.

Although in practice Bitcoin investments are considered more volatile than traditional assets, many managers and investors see the crypto as a long-term store of value.

If Florida decides to include Bitcoin in its retirement funds, this step could set an example for other states to show interest in crypto investments.

This initiative by Patronis shows that Bitcoin is considered as a tool that has the potential to strengthen its place in the world of digital finance and transform traditional financing systems.