Florida Plans to Invest $1,85 Billion in Bitcoin for Pension Funds

• Florida Considers Bitcoin in State Pension Funds
• Proposal seeks diversification with digital assets
• Model could inspire other American states

Florida Chief Financial Officer Jimmy Patronis has taken a significant step forward by suggesting that the State Board of Directors (SBA) consider including Bitcoin in the funds state pension plans. In a formal letter, Patronis highlighted Bitcoin as a strategic opportunity to diversify the state’s investment portfolio, referring to the cryptocurrency as “digital gold.” The proposal aims not only to exploit the asset’s appreciation potential but also to protect retirement funds from market fluctuations in other asset classes.

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 you need to know:

The Speaker of the Florida House, Danny… pic.twitter.com/JJRNU1V7ZI

— Samuel Armes (@samuelarmes) December 3, 2024

The initiative calls for the creation of a “Digital Currency Investment Pilot Program” within the Florida Growth Fund. The fund has already proven itself, investing nearly $1 billion in high-growth sectors over the past year. The inclusion of Bitcoin, according to Patronis, is a long-term measure to maximize returns for public sector professionals such as teachers, firefighters and police officers. He believes the measure prepares the state for the inevitable rise of cryptocurrencies in the global financial market.

The proposal is in line with efforts led by Governor Ron DeSantis, who has previously expressed opposition to Central Bank Digital Currencies (CBDCs). According to DeSantis, cryptocurrencies represent the “antithesis” of centralized monetary systems, reinforcing the decentralized nature and financial freedom that assets like Bitcoin offer. Florida seeks to lead the way in adopting these new technologies into its investment system.

Other states in the US, such as Wisconsin and Michigan, have already added cryptocurrencies to their state retirement funds, serving as a model for the Florida proposal. These states have been using digital assets as a tool to diversify their portfolios and provide greater stability in the face of economic uncertainty. The move towards Bitcoin investments also reflects a growing national trend of cryptocurrency adoption in state financial systems.

Although the initiative is seen as bold, the final decision will still depend on a detailed analysis by the SBA, which must present a full report on the viability, risks and benefits of investing in Bitcoin before the next legislative session, scheduled for March 2025.

At the time of this post, Bitcoin was trading at $100.235, down 1.6% over the past 24 hours.

If the proposal is implemented, Florida could position itself as a leader in adopting digital assets in government investments. This move could also encourage other states to consider including cryptocurrencies in their own financial systems, further expanding Bitcoin’s role in the institutional landscape.