Louisiana state approves new cryptocurrency laws: defining the role of node operators and banning CBDCs.
The state of Louisiana has updated its legislation to ban CBDCs and establish rules for bitcoin miners and node operators. The changes will come into effect in August 2024.
The legislation, known as the Blockchain Basics Act, prohibits Louisiana from participating in tests, accepting, or requesting payments using CBDCs.
The law states:
“A governing authority shall not participate in any test of central bank digital currency by the Board of Governor.”
Additionally, Louisiana will impose restrictions on foreign miners. The legislation will prohibit foreign entities from acquiring or maintaining a stake in mining companies operating within Louisiana. Foreign-controlled companies currently active in mining in Louisiana will have one year, starting from August 1st, to completely divest their operations. Penalties for non-compliance can reach up to $1 million or 25% of the foreign party’s stake in the mining operation.
Definition and role of node operators
The legislative revision provides a definition for node operators and clarifies their role within a blockchain. According to the act, a node is a computational device that communicates with other devices or participants on a blockchain to maintain the consensus and integrity of the blockchain, creating and validating transaction blocks. It specifies:
“A node does not exercise discretion over transactions initiated by the end user of the blockchain protocol.”
Position of the United States on CBDCs
The prospects for a CBDC in the United States are becoming increasingly uncertain. In addition to Louisiana, other states such as Florida and North Carolina have also adopted legislative measures to limit or prohibit the use of CBDCs.
The candidate for the upcoming presidential election, Donald Trump, has repeatedly expressed his opposition to CBDCs, citing concerns about excessive government control and increased financial surveillance. Last January, during a speech for his election campaign, Trump stated that he would never allow the creation of a CBDC, asserting that it would give the government “absolute control” over citizens’ money.
Furthermore, several U.S. senators, including Republican representative from Minnesota Tom Emmer, are seeking to ban the introduction of a CBDC in the country.
