The state of Louisiana in the United States has enacted a law prohibiting the use of CBDC and establishing rules for miners and node operators. The law will officially take effect in August this year.
Content Index
Toggle
The third state in the United States prohibits CBDC
Miners are not allowed to be funded from abroad
Node operators are not allowed to alter user transactions
The third state in the United States prohibits CBDC
According to Forbes, the HB 488 bill has been amended to prohibit the “Blockchain Foundation Act,” which will prohibit Louisiana from:
Participating in CBDC testing.
Accepting or requiring the use of CBDC for payment.
The bill No. 488 in the House of Representatives was led by Representative Mark Wright and supported by Senator Jean-Paul Coussan. Both parties in the House of Representatives and the Senate have approved it, and it has been signed into law by Governor Jeff Landry.
Advertisement – Continue scrolling for more
This makes Louisiana the third state in the United States to explicitly prohibit CBDC, following in the footsteps of Florida and North Carolina.
(San Francisco Federal Reserve recruits CBDC architects, Florida Governor and Republican lawmakers: CBDC must be banned)
HB 488
Miners are not allowed to be funded from abroad
Although the legislation prohibits CBDC, “other digital currencies” are not within the scope of this ban.
In addition, 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 businesses within the state.
Starting from August 1, 2024, foreign-controlled mining enterprises in Louisiana will have one year to completely divest their interests. Non-compliant companies will face fines of up to $1 million or 25% of foreign ownership.
The amendment in Louisiana also defines node operators, clarifying that while nodes play a crucial role in maintaining the blockchain, they do not have the authority to alter or determine 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 are not authorized to exercise discretion over transactions initiated by end users on the blockchain.
Former presidential candidate Trump has also harshly stated that he will never allow the issuance of CBDC, emphasizing that it is a major threat to freedom and democracy.
(Trump: Never allow the Fed to issue CBDC, the federal government will control your money)
CBDC
Florida
North Carolina
Trump
Louisiana
(Img)
Related Reading
Bernstein: Election sentiment shifts towards the Republican Party, cryptocurrencies will become “Trump trades”
Ark founder Cathie Wood expresses support for Trump: Based on economic considerations