The state of Louisiana in the United States has amended the law to ban the use of CBDC and formulate rules for miners and node operators. The bill will officially take effect in August this year.

Third US state bans CBDC

According to Forbes, the bill HB 488 amends the "Blockchain Basics Act" and will prohibit Louisiana from:

  1. Participate in the testing of CBDC.

  2. Accept or require payment in CBDC.

House Bill 488, led by Rep. Mark Wright and sponsored by Sen. Jean-Paul Coussan, has been approved by both parties in the House and Senate and signed into law by Gov. Jeff Landry.

This makes the third state in the United States to explicitly ban CBDC after Florida and North Carolina.

(The San Francisco Fed solicits CBDC architects, the governor of the United States and Florida, and Republican congressmen: CBDC must be banned)

HB 488 Miners are not allowed to inject capital from foreign countries

While the legislation bans CBDC, “other digital currencies” are not covered by the bill.

In addition, Louisiana will also implement strict controls on foreign-owned digital asset mining companies, prohibiting foreign entities from acquiring any shares in digital asset mining businesses within the state.

Starting Aug. 1, 2024, foreign-controlled mining companies in Louisiana will have one year to fully divest their interests. Companies that fail to comply face fines of up to $1 million or 25% foreign ownership.

Node operators are not allowed to modify user transactions

Louisiana’s revised law also defines node operators, clarifying that although nodes play a key role in maintaining the blockchain, they have no right to change or determine the results 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 verify transaction blocks, and the node is responsible for the transactions initiated by the end users of the blockchain. No discretionary power may be exercised in transactions.

Previously, presidential candidate Trump also sternly stated that he would never allow the issuance of CBDC, emphasizing that this was a major threat to freedom and democracy.

(Trump: The Federal Reserve will never be allowed to issue CBDC, the federal government will control your money)

This article The third US state, Louisiana, bans CBDC, and foreign mining companies are limited to divestment within one year. First appeared on Chain News ABMedia.