The US state of Louisiana has amended legislation to ban the use of central bank digital currencies (CBDCs) and set rules for miners and node operators.

According to amendments to the Blockchain Basics Act, which are scheduled to take effect in August 2024, the state of Louisiana will be prohibited from accepting digital dollars and any CBDC, as well as making payments using them. Local governments and organizations will not be able to participate in digital dollar testing conducted by the US Federal Reserve (Fed) or federal agencies.

At the same time, individuals and businesses will be able to freely use digital assets to pay for legal goods and services. In addition, users will be able to independently store digital assets in cryptocurrency or hardware wallets.

The updated law also allows for cryptocurrency mining at home, subject to local noise ordinances. Cryptocurrency mining businesses will be able to operate in industrial zones as long as they comply with regulatory requirements. It is also allowed to manage a node to connect to the blockchain and participate in staking.

As for foreign organizations, they are prohibited from mining in Louisiana. These include citizens or agents of other countries, as well as organizations that are largely controlled by foreigners. Starting August 1, for 365 days, foreign parties must stop mining in Louisiana or the Attorney General’s Office will file a lawsuit against them. The court may order the sale of the mining business, as well as impose an administrative fine of up to $1 million or 25% of the fair market value of the foreign party’s share.

Last year, Texas Senator Ted Cruz introduced a bill to prevent the Federal Reserve from launching a digital dollar. According to the senator, CBDC will hinder the implementation of Bitcoin and “strangle” the financial freedom of citizens. Florida Governor Ron DeSantis also opposed the use of a state digital currency.