ChainCatcher reported that according to Cointelegraph, the U.S. state of Louisiana has amended its legislation to ban the use of central bank digital currencies (CBDCs) and set rules for miners and node operators. The revised law will take effect in August 2024.

The amendments, known as the “Blockchain Foundation Act,” prohibit Louisiana from participating in testing, accepting, or requiring the use of CBDCs for payments. However, other digital currencies are not prohibited by the law. “No governing body may participate in the Federal Reserve’s testing of a central bank digital currency,” the bill reads.

Louisiana also imposes strict controls on foreign-owned digital asset mining companies. The state’s legislation prohibits foreign entities from acquiring or maintaining a stake in any digital asset mining business within Louisiana.

Foreign-controlled businesses currently engaged in digital asset mining in Louisiana will have one year to fully divest their interests starting August 1, 2024. The law provides for significant penalties for noncompliance, up to $1 million or 25% of the foreign entity’s stake in the mining operation.