Louisiana, USA has passed a law prohibiting the use of CBDC and setting rules for miners and node operators. The law will officially take effect in August of this year.
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The third state in the United States bans CBDC
Miners cannot be funded by foreign countries
Node operators cannot alter user transactions
The third state in the United States bans CBDC
According to Forbes, the bill HB 488 has been amended to the “Blockchain Basic Law,” and will prohibit Louisiana from:
Participating in CBDC testing.
Accepting or requesting the use of CBDC for payment.
The bill, House Bill No. 488, was led by Representative Mark Wright and supported by Senator Jean-Paul Coussan. Both the House and the Senate have approved it, and it has been signed into law by Governor Jeff Landry.
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This makes Louisiana the third state in the United States to explicitly ban CBDC, following Florida and North Carolina.
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HB 488
Miners cannot be funded by foreign countries
Although the legislation prohibits CBDC, “other digital currencies” are not included in this ban.
Furthermore, Louisiana will also impose strict controls on digital asset mining companies owned by foreign entities, prohibiting foreign entities from acquiring any shares of digital asset mining operations within the state.
Starting from August 1, 2024, foreign-controlled mining companies in Louisiana will have one year to completely divest their interests. Non-compliant companies will face fines of up to $1 million or 25% ownership by foreign investors.
Louisiana’s legislation also defines node operators, clarifying that while nodes play a critical role in maintaining the blockchain, they do not have the authority to alter or decide the outcome of transactions initiated by users.
The bill states:
A node is a computing device that communicates with other devices or participants on the blockchain to maintain consensus and integrity, produce and verify transaction blocks. However, nodes may not exercise discretion over transactions initiated by end users of the blockchain.
Previously, presidential candidate Trump had sternly stated that he would never allow the issuance of CBDC, emphasizing that it is a major threat to freedom and democracy.
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