News
Louisiana passes Blockchain Basics Act, banning CBDC and protecting miners
Louisiana has become the latest US state to pass the Blockchain Basics Act, a law that protects digital asset owners and miners while banning future use of a digital dollar.
The Act received bipartisan support in the House and Senate before being forwarded to Governor Jeff Landry, who signed it into law. It will come into force in August.
Louisiana joins a growing list of states that have adopted versions of the Act, the original draft of which was heavily influenced by industry lobby group Satoshi Action Fund. This year, South Carolina, Ohio and Mississippi kickstarted campaigns to pass the law. Oklahoma, Arkansas and Montana have done so has already approved the bill.
Louisiana’s version of the law establishes some key provisions, including the right of residents to self-custody their digital assets. It also guarantees their right to spend digital assets for payments without additional legal requirements or barriers.
Like other states, Louisiana also seeks to protect block reward miners. This includes allowing home mining as long as the miner complies with existing laws, such as noise ordinances. Miners must also not be subject to additional requirements that do not apply to ordinary data center operators.
However, the law puts a brake on foreign companies seeking to start mining operations in the state. Louisiana has the third lowest energy prices in the United States. Once the law goes into effect in a month, foreign-owned mining facilities will have a year to divest or close or face fines of up to $1 million.
Louisiana and North Carolina join the anti-CBDC movement
THE Blockchain Fundamentals Act has consistently opposed CBDCs. In Louisiana, the law prohibits any government authority from participating in any CBDC testing and urges the state to “not support legislation, or other efforts, related to the adoption of a central bank digital currency in the United States.”
Like other anti-CBDC efforts, the state cites privacy violations and an “unacceptable expansion of federal authority” as primary reasons for opposing the digital dollar.
He adds that participation in digital dollar test “would give the Federal Reserve unprecedented control over the lives, liberties, choices and sovereignty of the people of Louisiana.”
Rep. Mark Wright, who pushed the bill through the House, attacked CBDC’s opposition, describing it as an attempt to digitize a broken system.
“Equally important, it could lead to serious limits on the freedom and political control that bitcoin and other assets can change. Our currencies or assets should reflect the values of our nation and society. Private property is one of the most important rights for people … we can’t let CBDCs change that element of our culture,” he said media stations.
A few days later the Louisiana General Assembly, North Carolina past a bill that prevents the state from accepting a CBDC. The day before, the bill passed the state Senate by an overwhelming vote of 39-5.
House Bill 690 now goes to Governor Roy Cooper for his signature. Cooper’s approval is just a formality; since the bill had a vote of 109-4 in the House, and collectively gained the support of more than three-fifths of legislators in both houses, the governor’s signature is ultimately irrelevant.
As in Louisiana, North Carolina legislators complaint a digital dollar would invade people’s privacy.
Sen. Brad Overcash (R-Gaston), who was a lead sponsor of the bill, said that with every transaction monitored by the federal government, a CBDC would allow prosecutors to invade any resident’s home without probable cause since they would be armed with their transaction history.
Watch: Finding Ways to Use CBDC Outside of Digital Currencies
New to blockchain? Check out CoinGeek Blockchain for Beginners section, the definitive resource guide to learn more about blockchain technology.