‘Crypto is not going anywhere’ — Florida chief financial officer

Jimmy Patronis, Florida’s chief financial officer and one of the officials responsible for overseeing the state’s pension funds, told CNBC’s Squawk Box that he directed the State Board of Administration to invest in Bitcoin (BTC) as a hedge against currency inflation and a bulwark against central bank digital currencies.

The chief financial officer cited his fiduciary duty to maximize returns on behalf of state employees to preserve purchasing power and warned other asset managers not to ignore the emerging asset class. Patronis told the CNBC host:

“Crypto is not going anywhere. It’s not going to contract — it’s going to continue expanding — and I think we’d be foolish if we’re not prepared to do everything we can to harness the opportunities there.”

“If you’re not paying attention to it, you’re making a mistake,” he continued. Patronis highlighted that decentralized cryptocurrencies protect consumer privacy and provide resistance against government overreach.

Related: Florida official wants Bitcoin included in state pension funds

Sovereign pension funds explore exposure to crypto

Patronis stressed the need for the United States to invest in cryptocurrencies to remain competitive in global markets and stay ahead of foreign countries, which are already considering diversifying their investments into Bitcoin and other digital assets.

In 2021, the South Korean Teachers’ Credit Union (KTCU) — a public pension fund for school teachers — announced it was seeking exposure to Bitcoin via exchange-traded funds. The fund represents one of the largest institutional investors in the Asian country.

Japan’s Government Pension Investment Fund, the largest public pension fund in the world, also revealed it was considering allocating a portion of its assets under management to Bitcoin.

At the time, the fund cited “Major changes in the economy and society, and rapid technological progress,” as the primary drivers for exploring a potential Bitcoin allocation.

More recently, in August, South Korea’s National Pension Service — the world’s third-largest pension fund — purchased $34 million of MicroStrategy stock, which many consider to be a proxy Bitcoin instrument.

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