Louisiana Passes Law Banning CBDCs and Supporting Bitcoin
Louisiana has enacted new legislation aimed at banning the use of Central Bank Digital Currencies (CBDCs) while bolstering protections for Bitcoin users and miners. Effective August 2024, the Blockchain Basics Act prohibits the state from participating in CBDC trials and prohibits the acceptance or requirement of CBDC payments.Â
The Bitcoin-enabling legislation is sponsored by the state Representative Mark Wright and backed by the state Senator Jean-Paul Coussan, and it brings about considerable measures to protect Bitcoin in the region of Louisiana. It guarantees individuals’ ability to safely store their assets in wallets and enhance their financial autonomy and freedom in transactions by enabling Bitcoin transactions without new regulations.
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In addition to its stance on CBDCs, Louisiana’s legislative updates also impose strict regulations on foreign-owned digital asset mining operations. Foreign entities currently engaged in such activities have until August 2025 to divest fully from their Louisiana operations or face penalties that can reach up to $1 million or 25% of their stake in the mining venture. The law dictates the intermediation of node operators by guaranteeing that the transaction will be confirmed and correct, all the time having no control over the user’s transactions.
House Bill 488 which has recently passed in Louisiana has shown the state approaching the regulation of digital currency by supporting decentralized cryptocurrencies like Bitcoin while creating limitations to the centrally controlled digital currencies.
Louisiana Enacts Law Banning CBDCs and Protecting Bitcoin Users Louisiana has passed the Blockchain Basics Act, effective August 2024, which bans the use of Central Bank Digital Currencies (CBDCs) and strengthens protections for Bitcoin users and miners. Sponsored by state Representative Mark Wright and backed by state Senator Jean-Paul Coussan, the legislation ensures individuals can store Bitcoin securely in wallets and engage in Bitcoin transactions without new regulations. The new law also imposes strict regulations on foreign-owned digital asset mining operations, requiring foreign entities to divest from their Louisiana operations by August 2025 or face penalties. The state joins Oklahoma, Montana, and Arkansas in setting a pro-Bitcoin policy blueprint for the nation.
