Louisiana the Third State in the United States Prohibits CBDC and Imposes a OneYear Limit on Foreign Mining Companies Withdrawal of Investment
The state of Louisiana in the United States has passed a law prohibiting the use of CBDC and establishing rules for miners and node operators. The law will officially take effect in August of this year.
Louisiana, the third state in the United States to explicitly ban CBDC, has revised the “Blockchain Basic Law” with the bill HB 488. The law prohibits Louisiana from participating in CBDC testing, as well as accepting or requiring the use of CBDC for payments. The bill, sponsored by Representative Mark Wright and supported by Senator Jean-Paul Coussan, has been approved by both the House and the Senate, and signed into law by Governor Jeff Landry.
In addition to banning CBDC, the law also imposes strict controls on foreign-owned digital asset mining companies in Louisiana, prohibiting foreign entities from obtaining any shares in the digital asset mining business within the state. Foreign-controlled mining companies in Louisiana will have one year, starting from August 1, 2024, to completely divest their interests. Non-compliant companies will face fines of up to $1 million or 25% of foreign ownership.
The law in Louisiana also defines node operators, clarifying that while nodes play a crucial role in maintaining the consensus and integrity of the blockchain, they do not have the authority to change or determine the outcome of transactions initiated by users.
Former presidential candidate Donald Trump has also strongly stated that he will never allow the issuance of CBDC, emphasizing that it is a major threat to freedom and democracy.
