Florida CFO Lawyers Strategic Bitcoin Reserve

Florida Chief Financial Officer (CFO) Jimmy Patronis has proposed establishing a “strategic bitcoin reserve.” He regularly advised Florida's pension fund — which covers firefighters, teachers, police officers and other public sector workers — to consider Bitcoin as a potential asset.

If the proposal passes, the move could set a new trend in government-backed financing strategies.

Bitcoin May Join Florida State Pension Funds

Patronis argues that bitcoin, often referred to as “digital gold,” can be used as a powerful diversification tool. The CFO said it helps protect the state's investments from the volatility typically seen in traditional asset classes.

“Bitcoin is often referred to as “digital gold”, and it helps to diversify the state's portfolio and provide a safe hedge against the volatility of other major asset classes,” read an expert in a letter to Chris Spencer, executive director of the Florida State Board of Administration (SBA).

The letter formalizes the SBA's request to analyze the feasibility of including Bitcoin and other digital assets in the state's investment portfolio. This analysis evaluates the potential risks, benefits and overall feasibility. This is amid plans to add digital currencies to Florida pension funds through the “Digital Currency Investment Pilot Program.”

Patronis said the proposal aligns with Florida's economic goals. He emphasized that innovative and progressive financial strategies are an integral part of the state's investment philosophy. In his letter, Patronis highlighted Florida's impressive economic history. He added that a diversified portfolio, including digital assets, could strengthen the state's finances.

Read more: How to buy Bitcoin (BTC) and everything you need to know

This approach mirrors steps taken by other states, including Wisconsin and Michigan, where small pension funds are leading Bitcoin-focused ETFs (exchange-traded funds). Such funds provide indirect exposure to Bitcoin, allowing institutional investors to gain growth from the cryptocurrency without direct ownership.

Similarly, Arizona has initiated legislative efforts to include digital assets in its state pension fund. Three years after he proposed to make Bitcoin Legal tender. Notable moves in Wyoming and Nebraska show national progress toward crypto adoption. Both have developed frameworks to attract crypto-friendly businesses and charter digital asset banks.

Patronis cited these examples to show how digital currency investments are gaining major traction, especially in state financial structures. Another unmentioned example is the city of Jersey, which recently chose to hedge its city's pension fund in a Bitcoin ETF, aiming to hedge against broader financial risks.

These highlights reflect a broader trend of state and municipal entities cautiously entering the crypto market. They want to use the term Bitcoin as a long-term inflation-resistant asset.

A potential game changer for state pension funds

Incorporating Bitcoin can help Florida pension funds achieve portfolio diversification. At the same time, it is consistent with the state's pro-innovation stance. Patronis has increased interest in Bitcoin as a store of value and price in the US and international markets.

Recent developments include the South Korean National Pension Service's investment in MicroStrategy. This reflects a changing attitude among institutional investors globally. While bitcoin remains volatile, many advocates argue that its finite supply and growing adoption make it a reliable long-term hedge.

Patronis noted that a “digital currency investment pilot program” could be established first in Florida's development fund. This is a government initiative designed to accommodate more experimental and high growth investments. If successful, the pilot program could signal a broader shift, allowing more state-backed funds to explore digital assets as viable financial instruments.

Meanwhile, Patronis' proposal comes as discussions around cryptocurrency and national investment policy heat up. Presidential candidate Donald Trump recently proposed a national bitcoin reserve. It aimed to establish a central crypto reserve to increase the financial independence of the United States.

It will be my administration's policy to keep 100% of the bitcoins the US government currently holds or acquires. It will serve as an integral part of a strategic national bitcoin reserve… I will be the pro-innovation candidate for bitcoin, the kind of innovation America needs and our citizens deserve,” Trump said.

This idea has fueled calls from crypto advocates for government-backed digital asset investments. If Trump's proposal is approved, it will serve as a major endorsement of Bitcoin's role in institutional investment. It also strengthens its image as a strategic financial asset.

Patronis cited Trump's position to bolster his call for statewide adoption. He suggested that the federal government's exploration of bitcoin reserves could encourage states to include the digital asset. In the letter, Patronis thanked Florida Governor Ron DeSantis for taking proactive steps to prevent central bank digital currencies (CBDCs) from harming Floridian consumers and investors.

BeenCrypto reports that DeSantis' policy is focused on protecting citizens from federal surveillance of their financial information. He calls CBDCs a threat to American liberty, which aligns with Patronus' emphasis on financial autonomy.

Read more: Crypto Regulation: What are the Pros and Cons?

Patronis' support for Bitcoin is an important moment for the public.Sector investment in digital assets. With global inflation concerns and a possible economic downturn on the horizon, states like Florida are looking for ways to protect and diversify public funds.

It remains to be seen whether this proposal will be implemented. For now, Patronis has asked the SBA to prepare a detailed report on the risks and benefits of such a pilot initiative.