Louisiana’s new crypto law protects node operators, bans CBDC

Ana Paula Pereira5 hours agoLouisiana’s new crypto law protects node operators, bans CBDCThe U.S. state of Louisiana has updated its legislation to ban the use of central bank digital currencies and establish rules for digital asset miners and node operators.1429 Total views1 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksThe 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 become effective in August 2024.

The amendments, dubbed the Blockchain Basics Act, prohibit the state of Louisiana from participating in tests and accepting or requiring payments using a CBDC. However, other digital currencies are not prohibited by the legislation. “A governing authority shall not participate in any test of central bank digital currency by the Board of Governor,” reads the act.

Louisiana is also enforcing tight controls over foreign-owned digital asset mining companies. The state’s legislation prohibits foreign parties from acquiring or maintaining any stake in digital asset mining operations within Louisiana.

Effective from Aug. 1, 2024, foreign-controlled businesses currently engaged in digital asset mining in Louisiana will have a one-year window to divest their interests fully. The law stipulates significant penalties for noncompliance, which can reach up to $1 million or 25% of the foreign party’s stake in the mining operation.Node operators in Louisiana

Louisiana’s revised legislation provides a definition for node operators and their role in a network, clarifying that although nodes play crucial roles in maintaining a blockchain, they do not have the authority to alter or decide the outcome of transactions initiated by users.

According to the act, a node is a computational device that communicates with other devices or participants on a blockchain to maintain consensus and integrity of that blockchain, creating and validating transaction blocks. It notes:“A node does not exercise discretion over transactions initiated by the end user of the blockchain protocol.”Digital dollar vs. U.S. elections

The prospects of a digital dollar in the United States are becoming increasingly uncertain. Like Louisiana, other states, including Florida and North Carolina, have taken legislative action to restrict or ban the use of CBDCs.

CBDCs face similar challenges among presidential contenders for the upcoming election. Donald Trump has expressed opposition to CBDCs, citing concerns about government overreach and the potential for increased surveillance. During a January campaign speech, Trump said that he would “never allow the creation of a central bank digital currency,” saying that it would give the government “absolute control” over citizens’ money.

The Biden administration, on the other hand, appears more open to exploring the potential of CBDCs. However, it has faced legislative pushback from several U.S. senators who seek to ban the introduction of a digital dollar in the country.

According to the Cointelegraph Research database, at least 110 countries are actively exploring or developing a CBDC. Of these, 39 have progressed to more advanced stages, such as piloting or launching CBDC initiatives.

Magazine: Lawmakers’ fear and doubt drives proposed crypto regulations in US# Louisiana# United States# Nodes# CBDC# RegulationAdd reaction