Florida's Chief Financial Officer has sent a request to the State Board of Governors for a feasibility report on investing a portion of the state's pension fund in crypto, i.e. Bitcoin.
“Bitcoin is often referred to as ‘digital gold,' and it helps diversify the state's portfolio and provide a safe hedge against the volatility of other major asset classes,” Florida's Jimmy Patronis said in a statement. Letter Tuesday.
The question comes as Bitcoin hit a near five-month high on Tuesday, fueled by market sentiment surrounding the US presidential election. With former President Donald Trump By making a promise With favorable crypto policies, traders expect the election results to cause significant price volatility.
In the letter, Patronis echoed comments made by former President Donald Trump at the Bitcoin 2024 conference in Nashville in July. Trump at the time proposed that Creating a Bitcoin National Reserve Using Digital Assets Seized by Law Enforcement Actions.
“If elected, it will be the policy of my administration to keep 100% of what the United States government owns or acquires,” Trump said at the event, adding that the money would be a key part of the strategy. National Bitcoin Reserve.”
Florida's CFO proposed how the SBA is considering a digital currency investment pilot program as part of the Florida Growth Fund to test the viability of crypto in Florida's retirement system.
“This program could be a perfect fit, offering benefits that we cannot afford to ignore,” he said.
of Florida Growth Fund The initiative stems from the Florida Technology and Development Act of 2008. The act allows the SBA to invest up to 1.5% of the Florida Retirement System's pension fund assets in technology and growth enterprises with significant locations in Florida.
Patronis aligned his initiative with Florida Governor Ron DeSantis' legislation Resist Central bank digital currencies, stating that crypto is the opposite of centralized financial control.
“Crypto is the antithesis of centralized currency by offering decentralized digital currencies managed by blockchain technology that are not centralized or controlled by any government agency,” Patronis explained.
Florida has shown a steady interest in promoting crypto adoption under the leadership of Governor Ron DeSantis. In 2022, DeSantis proposed that Allowing businesses to pay state taxes in Bitcoin in an effort to make Florida a crypto-friendly state.
“When managing state pensions for firefighters, teachers and police officers, it's important to prioritize the bottom line and ensure the best return on investment for Floridians. This is where the potential to invest, especially in cryptocurrencies like Bitcoin, is encouraged,” Patronis said.
The executive order cites similar initiatives in other states. Michigan, WisconsinArizona and Jersey City They have taken steps to include cryptocurrencies in their retirement funds.
Wyoming And Nebraska It has also developed crypto-friendly regulations to attract blockchain businesses. Patronis urged Florida to explore similar strategies, asking the SBA to complete its report before the next legislative session.
Edited by Sebastian Sinclair.
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