{"id":82358,"date":"2024-06-24T15:30:28","date_gmt":"2024-06-24T19:30:28","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=82358"},"modified":"2024-06-24T15:36:17","modified_gmt":"2024-06-24T19:36:17","slug":"louisiana-crypto-law-protects-node-operators-bans-cbdc","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/louisiana-crypto-law-protects-node-operators-bans-cbdc\/","title":{"rendered":"Louisiana Crypto Law Protects Node Operators, Bans CBDC"},"content":{"rendered":"\n

Louisiana's revised Blockchain Basics Act, effective August 2024, bans CBDCs and sets rules for miners and node operators while allowing other digital currencies<\/a>.<\/p>\n\n\n\n

\"Louisiana
Louisiana Crypto Law Protects Node Operators, Bans CBDC<\/figcaption><\/figure>\n\n\n\n

The state of Louisiana in the United States has altered its legislation to prohibit the use of central bank digital currencies (CBDCs) and establish regulations for node administrators and miners. The revised law will be implemented in August 2024.

The U.S. state of Louisiana is prohibited from participating in tests and accepting or requiring payments using a CBDC as a result of the amendments, which are referred to as the Blockchain Basics Act.<\/p>\n\n\n\n

Nevertheless, the legislation does not prohibit the use of other digital currencies. The Act stipulates that “a governing authority shall not participate in any test of central bank digital currency by the Board of Governor.”<\/p>\n\n\n\n

Additionally, Louisiana is implementing stringent regulations regarding digital asset extraction companies that are owned by foreign entities. Foreign parties are prohibited from acquiring or maintaining any interest in digital asset mining <\/a>operations within Louisiana by the state's legislation.

Foreign-controlled businesses that are currently engaged in digital asset extraction in Louisiana will have a one-year window to divest their interests fully effective August 1, 2024. The law imposes substantial penalties for noncompliance, which may amount to $1 million or 25% of the foreign party's interest in the mining operation.<\/p>\n\n\n\n

In Louisiana's revised legislation, node operators are defined and their function in a network is clarified. This clarification emphasizes that while nodes are essential for the maintenance of a blockchain, they are not authorized to modify or determine the outcome of transactions initiated by users.<\/p>\n\n\n\n

A computational device that communicates with other devices or participants on a blockchain to maintain the consensus and integrity of that blockchain, creating and validating transaction blocks, is referred to as a node in the Act. It observes:<\/p>\n\n\n\n

\n

\u201cA node does not exercise discretion over transactions initiated by the end user of the blockchain protocol.\u201d<\/p>\n<\/blockquote>\n\n\n\n

The likelihood of a digital currency in the United States is becoming more uncertain. Other states, such as Florida and North Carolina, have implemented legislative measures to limit or prohibit the use of CBDC<\/a>s, similar to Louisiana.<\/p>\n\n\n\n

Among the presidential candidates for the forthcoming election, CBDCs encounter comparable obstacles. Donald Trump has expressed his aversion to CBDCs, citing concerns regarding government overreach and the potential for increased surveillance.<\/p>\n\n\n\n

Trump declared in a January campaign speech that he would “never permit the establishment of a central bank digital currency,” asserting that such a currency would grant the government “absolute control” over the money of its citizens.

Conversely, the Biden administration appears to be more amenable to investigating the potential of CBDCs. Nevertheless, it has encountered legislative opposition from numerous U.S. senators who are advocating for the prohibition of the introduction of a digital dollar in the United States.

At least 110 countries are currently engaged in the exploration or development of CBDC\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a>, as indicated by the Cointelegraph Research database. 39 of these have advanced to more advanced stages, such as the piloting or launching of CBDC initiatives.<\/p>\n","protected":false},"excerpt":{"rendered":"

Louisiana’s revised Blockchain Basics Act, effective August 2024, bans CBDCs and sets rules for miners and node operators while allowing other digital currencies. The state of Louisiana in the United States has altered its legislation to prohibit the use of central bank digital currencies (CBDCs) and establish regulations for node administrators and miners. The revised […]<\/p>\n","protected":false},"author":36,"featured_media":82361,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[20180,773,4548,20179],"class_list":["post-82358","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-bans","tag-cbdc","tag-crypto-law","tag-louisiana"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2024\/06\/U.S.-Governor-signs-bill-allowing-Louisiana-banks-to-custody-Bitcoin-and-crypto-for-customers-1024x585-1.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/82358","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/36"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=82358"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/82358\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/82361"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=82358"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=82358"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=82358"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}