The state of Louisiana in the United States has recently made changes to its legislation, introducing new rules and bans related to central bank digital currencies (CBDCs), miners, and node operators. These amendments, known as the Blockchain Basics Act, will come into effect in August 2024.
Under the revised law, Louisiana is prohibited from participating in any tests involving CBDCs, as well as accepting or requiring payments using such currencies. However, the legislation does not prohibit the use of other digital currencies. The act explicitly states that the governing authority cannot engage in any CBDC tests conducted by the Board of Governors.
In addition to these measures, Louisiana is imposing strict controls on foreign-owned digital asset mining companies. The state’s legislation forbids foreign entities from acquiring or maintaining any stake in digital asset mining operations within Louisiana.
Starting from August 1, 2024, foreign-controlled businesses that are currently involved in digital asset mining in Louisiana will have a one-year period to divest their interests completely. Failure to comply with the law can result in significant penalties, including fines of up to $1 million or 25% of the foreign party’s stake in the mining operation.
The revised legislation also provides a clear definition for node operators and their role in a network. It emphasizes that while nodes play a vital role in maintaining a blockchain, they do not possess the authority to alter or determine the outcome of user-initiated transactions. According to the act, a node is a computational device that communicates with other devices or participants on a blockchain to uphold consensus and integrity, validating and creating transaction blocks.
The future of a digital dollar in the United States is becoming increasingly uncertain, with several states, including Louisiana, Florida, and North Carolina, taking legislative action to restrict or ban the use of CBDCs. Presidential contenders also have differing views on the matter. Donald Trump has expressed opposition to CBDCs, citing concerns about government overreach and increased surveillance. On the other hand, the Biden administration appears more willing to explore the potential of CBDCs, despite facing opposition from some senators seeking to ban the introduction of a digital dollar in the country.
According to the Cointelegraph Research database, around 110 countries are actively exploring or developing CBDCs, with 39 of them in more advanced stages of piloting or launching CBDC initiatives.
In conclusion, fear and doubt among lawmakers are driving proposed crypto regulations in the United States, as seen in the recent legislative actions taken by various states and the differing views of presidential contenders.