State of Louisiana prohibits the use of CBDC and proposes rules for crypto mining – DiarioBitcoin

The new provisions come into force as of August 1, and establish a total ban on CBDC at the state level. It also sets out rules and regulations applicable to cryptocurrency mining.

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• Louisiana passes new laws related to CBDC and cryptocurrency mining
• The adoption and use of any CBDC, even if it is issued by FED or some federal agency
• It also prohibits residents and businesses from participating in tests with these assets.
• Regarding mining, it establishes rules and regulations that residents must follow
• Foreigners are prohibited from carrying out this activity, and have one year to cease operations

The state of Louisiana recently passed a new set of laws banning the circulation of digital currencies issued by central banks. (CBDC), as well as other provisions that regularize the status of miners and node operators at the local level.

Restrictions for CBDC

The new provisions were outlined in a recently approved law, which is part of the Blockchain Basic Law which will govern at the state level, and whose implementation formally begins next August.

According to several reports, the new rules prevent residents and the state from using or approving any CBDC, even if it is some test being done by the US Federal Reserve or some federal agency.

Although the provision is quite rigid in relation to the possible adoption and use of some CBDC, The ban leaves out the use of much better-known digital currencies. The state is known for managing a crypto-friendly policy with residents, so people and companies are free to use digital assets for the payment of legal goods and services, as well as to use specialized hardware or software for their custody.

Let us keep in mind that, despite being a use case that several countries are already investigating and/or contemplating implementing, the CBDC They are the subject of strong criticism due to the risks involved in the centralization of money in the hands of a central issuer. Analysts point out that they may well constitute a threat to the financial freedoms of users, as they are a tool of espionage and control by the issuing governments.

Rules for crypto mining

Regarding crypto mining activities, the law allows residents to carry out these types of activities in their homes as long as they do not violate regulations related to noise.

For companies, they will be able to carry out crypto mining operations as long as they are carried out in industrial zones under local ordinances. There are also provisions that allow you to operate nodes or participate in staking systems.

However, only US entities and citizens will be able to carry out cryptomining activities, so foreigners will not be able to carry out this work within the state. If there is a company or person from another country that carries out such practices, they will have one year from August 1 to cease activities or they will be subject to legal action by the local prosecutor’s office with sanctions of up to USD $1 million or the 25% of the value of the operators’ assets.

Article by Angel Di Matteo / DailyBitcoin

Picture of Unsplash

WARNING: This is an informative article. DiarioBitcoin is a media outlet, it does not promote, endorse or recommend any particular investment. It is worth noting that investments in cryptoassets are not regulated in some countries. They may not be suitable for retail investors as the entire amount invested could be lost. Check the laws of your country before investing.