Louisiana, the third state in the United States, bans CBDCs; foreign mining companies required to withdraw investments within one year

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 this year.

Third State in the U.S. Bans CBDCs

According to Forbes, the bill HB 488 has been amended in Louisiana regarding the "Blockchain-Based Law," which will prohibit the state from:

1. Participating in CBDC testing.

2. Accepting or requiring the use of CBDC for payments.

House Bill 488 was spearheaded by Representative Mark Wright and supported by Senator Jean-Paul Coussan. It has been approved by both the House and the Senate, and signed into law by Governor Jeff Landry.

This makes Louisiana the third state in the U.S. to explicitly ban CBDCs, following Florida and North Carolina.

San Francisco Fed Seeks CBDC Architect, Florida Governor, Republican Lawmakers: CBDC Must Be Banned

Foreign Investment in Mining Prohibited

Although the legislation bans CBDCs, "other digital currencies" are not within the scope of this prohibition.

Additionally, Louisiana will impose strict controls on digital asset mining companies owned by foreign entities, prohibiting foreign entities from acquiring any stakes in digital asset mining businesses within the state.

Starting from August 1, 2024, foreign-controlled mining companies in Louisiana will have one year to fully divest their interests. Non-compliant companies will face fines of up to $1 million or 25% of foreign ownership.

Node Operators Prohibited from Altering User Transactions

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 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 the consensus and integrity of the blockchain, produce and validate transaction blocks, and a node shall not exercise discretion over transactions initiated by end-users on the blockchain.

Former presidential candidate Trump has also emphatically stated that he will never allow the issuance of CBDCs, emphasizing it as a significant threat to freedom and democracy.

Trump: Federal Reserve Will Never Issue CBDC, Federal Government Will Control Your Money