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Bitcoin can help diversify the state’s portfolio, according to Patronis.
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The manager says that BTC is a refuge from the volatility of other larger assets.
The head of the Florida governor’s finance office, Jimmy Patronis, proposed the use of bitcoin (BTC) as part of the state’s strategic reserve. In a letter to the State Board of Administration (SBA), Patronis argued that BTC, often referred to as digital gold, could diversify the state’s portfolio and offer protection against the volatility of other assets.
“The State Board of Administration maintains a Florida Growth Fund that allows for more innovative and emerging investments, and a Digital Currency Investment Pilot Program could be a perfect option, offering potential benefits that we cannot afford to overlook.” , Cryptocurrency” target=”_blank” rel=”noreferrer noopener”>mentioned Patronis.
The chief financial officer asked the SBA to issue a detailed report on the feasibility, risks and benefits of investing a portion of the state retirement system in bitcoin. “It is unknown what the future of cryptocurrencies will be, but it is important that the state of Florida stays at the forefront when considering new investments and providing the best returns for Floridians,” he added.
Patronis also mentioned the examples of Wisconsin and Michigan, where it has been considered prudent to invest in cryptocurrencies. He also recalled that, in March, the Arizona Senate advanced its efforts to include cryptocurrencies in state retirement funds. Likewise, he mentioned the cases of Wyoming and Nebraska, leading states in Bitcoin Mining, which have passed laws to attract the industry.
The manager noted that, during the Bitcoin 2024 event, former president and candidate Donald Trump proposed the idea of a national cryptocurrency reservepromising to make the United States the world leader in cryptocurrencies, as reported by CriptoNoticias.
“Trump said he would establish a presidential cryptocurrency advisory council and create a national bitcoin ‘reserve’ using cryptocurrencies the US government currently holds, mostly seized in law enforcement actions. “I believe this foresight and innovative thinking from a successful businessman like President Trump should not be taken for granted,” Patronis said.
Patronis’s proposal seeks to position Florida as an innovative state in the financial fieldespecially in the use of cryptocurrencies. This, remembering that Florida Governor Ron DeSantis “also leaned to protect Floridians’ personal finances from government overreach and woke corporate oversight by signing legislation to fight Central Bank Digital Currencies (CBDC) “said the manager.
The letter sent to the SBA not only addresses portfolio diversification, but also the need to adapt to global trends in finance and technology, according to the CFO’s perspective.
Patronis highlighted the importance of being prepared for changes in the global market, where cryptocurrencies are gaining ground. The SBA’s response to this proposal has not yet been made public, but Patronis’ initiative marks a turning point in Florida financial policy. opening a debate on the integration of digital assets into state reserves.
This article was created using artificial intelligence and edited by a human Editor.
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