Florida Chief Financial Officer (CFO) Jimmy Patronis has proposed the establishment of a “Strategic Bitcoin Reserve.” He formally recommended that Florida’s pension funds — covering firefighters, teachers, police officers, and other public sector workers—consider Bitcoin as a potential asset.

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

Bitcoin May Join Florida State Pension Funds

Patronis argues that Bitcoin, often referred to as “digital gold,” could serve as a powerful diversification tool. The CFO says it could help shield the state’s investments from the volatility typically seen in traditional asset classes.

“Bitcoin is often called “digital gold,” and it could help diversify the state’s portfolio and provide a secure hedge against the volatility of other major asset classes,” read an expert in his letter to Chris Spencer, Executive Director of the Florida State Board of Administration (SBA).

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

Patronis says the proposal aligns with Florida’s economic goals. He emphasized innovation and progressive financial strategies as core elements of the state’s investment philosophy. In his letter, Patronis also highlighted Florida’s impressive economic track record. He added that a diversified portfolio, including digital assets, could potentially bolster 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 allocations of pension funds were directed into Bitcoin-focused ETFs (exchange-traded funds). Such funds allow indirect exposure to Bitcoin, letting institutional investors gain from cryptocurrency growth without direct ownership.

Similarly, Arizona has begun legislative efforts to incorporate digital assets into state retirement funds three years after proposing to make Bitcoin legal tender. Notable moves by Wyoming and Nebraska also display a national momentum toward crypto adoption. They have both developed frameworks to attract crypto-friendly businesses and charter digital asset banks.

Patronis cited these examples to illustrate how digital currency investments are gaining mainstream traction, particularly within state financial structures.  Another unmentioned example is Jersey City, which recently opted to invest in a Bitcoin ETF as a hedge for its city pension fund, aiming to mitigate broader financial risks.

These highlights reflect the broader trend of state and municipal bodies cautiously entering the crypto market. They want to capitalize on Bitcoin’s promise as a long-term, inflation-resistant asset.

A Potential Game-Changer for State Pension Funds

The potential inclusion of Bitcoin could help Florida’s pension funds achieve portfolio diversification. At the same time, it aligns with the State’s pro-innovation stance. Patronis pointed to the increased interest in Bitcoin as an inflation hedge and a store of value in both the US and international markets.

Recent developments include South Korea’s National Pension Service investment in MicroStrategy. This illustrates a shifting attitude among institutional investors worldwide. While Bitcoin remains volatile, many advocates argue that its finite supply and growing adoption make it a reliable long-term hedge.

Patronis stated that “a Digital Currency Investment Pilot Program” could initially be established within the Florida Growth Fund. This is a state initiative designed to accommodate more experimental, high-growth investments. If successful, the pilot program could signal a broader shift, allowing more government-backed funds to explore digital assets as viable financial tools.

Meanwhile, Patronis’s proposal comes as discussions around cryptocurrency and national investment policy heat up. Presidential aspirant Donald Trump recently proposed a national Bitcoin reserve. He aimed to establish a central crypto stockpile to enhance the United States’ financial independence.

“It will be the policy of my administration…to keep 100% of all the Bitcoin the US government currently holds or acquires into the future. This will serve in effect as the core of the strategic national bitcoin stockpile…I will be the pro-innovation and pro-Bitcoin candidate that America needs and that our citizens deserve,” Trump said.

This idea has added momentum to crypto advocates’ calls for government-backed digital asset investments. Trump’s proposal, if adopted, would serve as a major endorsement of Bitcoin’s role in institutional investment. It would also bolster its image as a strategic financial asset.

Patronis cited Trump’s stance to reinforce his call for state-level adoption. He suggested that the federal government’s exploration of a Bitcoin reserve could encourage states to incorporate digital assets. In the letter, Patronis also praised Florida’s Governor Ron DeSantis for his proactive measures in preventing central bank digital currencies (CBDCs) from affecting Floridian consumers and investors.

As BeInCrypto reported, DeSantis’s policy push focused on safeguarding citizens from federal control over financial data. He called CBDCs a threat to American liberty, which aligns with Patronis’s emphasis on financial autonomy.

Read more: Crypto Regulation: What Are the Benefits and Drawbacks?

Patronis’s endorsement of Bitcoin marks a noteworthy moment for public sector investment in digital assets. With global inflation concerns and potential economic slowdowns on the horizon, states like Florida are looking for ways to secure and diversify public funds.

It remains to be seen whether this proposal will materialize. For now, Patronis requests that the SBA prepare a detailed report on the risks and advantages of such a pilot initiative.