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25/06/24
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Louisiana Legislators Enroll Amendment to Ban CBDC Usage
The Louisiana state of the United States has prohibited the use of central bank digital currencies (CBDCs) and established rules for miners and node operators through an amendment of its legislation. The amendments are scheduled to take effect in August 2024.
The legislation was amended through the Block Blockchain Act prohibiting the state from testing, accepting or requiring payments using a CBDC and banning certain government regulations on digital assets. Conversely, the government must not ban the use of digital assets:
“A governing authority shall not prohibit, restrict, or otherwise impair the ability of an individual or business to do either of the following: accept digital assets as a method of payment for legal goods and services, and self-custody digital assets using a self-hosted wallet or hardware wallet.”
It will be legal to engage in home digital asset mining but must comply with all local noise ordinances; have a digital asset mining business in any area that is zoned for industrial use as long as all current ordinances are complied with; and operate a node to connect to a blockchain protocol, or a protocol built on top of a blockchain protocol, and transfer digital assets on a blockchain protocol, or to participate in staking on a blockchain protocol.
However, the attorney general can initiate actions against unfair trade practices and every breach of law and regulations. Prohibited foreign entities are now allowed to acquire or maintain any stake in digital asset mining operations within the state.
“A prohibited foreign-party-controlled business in operation before August 1, 2024, shall have three hundred sixty-five calendar days from August 1, 2024, for the prohibited foreign party to divest all interest in the digital asset mining business,” reads the legislation.
It is not certain that a digital dollar will be allowed in the U.S., as other states like North Carolina and Florida have adopted legislation to prohibit or ban CBDC usage. The current U.S. administration seems interested in exploring the possibility of using digital dollar.
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