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Louisiana Passes Bill to Protect Bitcoin Rights and Ban CBDCs
BATON ROUGE, LOUISIANA Photo by Chris Graythen
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Bitcoin rights have become law in a second state as Louisiana passes landmark pro-bitcoin law to protect access to bitcoin and curb Central Bank digital currencies. Governor Jeff Landry signed House Bill 488 into law after receiving bipartisan approval in both the House and Senate. This legislation, led by Congressman Mark Wright and supported by Senator Jean-Paul Coussan, ensures continued access to bitcoin by placing restrictions on CBDCs.
Key provisions of HB 488
The new law includes several important protections for bitcoin holders and miners:
Right to self-custody: The law ensures that people can safely store their digital assets. This provision is important for security and financial sovereignty.
Transactional freedom: Grants the right to use bitcoin for transactions, allowing people and businesses to spend and accept bitcoin without additional legal barriers.
Support for Bitcoin mining: The law supports bitcoin mining in industrial areas, with the goal of boosting Louisiana’s economy by attracting businesses and investments.
Ban on CBDCs: Prohibits the Louisiana government from accepting payments Central Bank digital currencieswith the aim of preserving privacy and resisting government-controlled digital currencies.
Economic and industrial impact
This legislation is expected to accelerate Louisiana’s mining industry by providing legal clarity and stability. As a leader in energy production, the state can attract investment in bitcoin mining, promoting innovation and creating new economic opportunities.
Representative Mark Wright, who was instrumental in sponsoring this legislation, commented: “I have written several bills in 6 years of legislature in an effort to pave the way in Louisiana for the changes and economic opportunities we will see from blockchain technology and resources For me it is important to create an economic environment conducive to innovation and investment.”
Wright also highlighted the importance of clarity and legal protection: “We wanted to ensure legal recognition and protection of digital assets, including self-custody or archiving. The next paradigm shift from blockchain will touch all aspects of society, So Louisiana’s regulatory clarity will help investment, jobs and economic freedom.”
Wider impact and national trend
Louisiana’s HB 488 is part of a larger national trend led by the Satoshi Action Fund. This year, Oklahoma passed a similar bill, and states like Georgia, Mississippi, Kentucky, South Carolina, and 11 others have introduced similar measures, demonstrating a collective movement toward protecting bitcoin rights across the country.
Dennis Porter, CEO of the Satoshi Action Fund, commented on the importance of state-level initiatives: “States are creating a model for federal policy. It won’t be long before we see the impact in Washington. The success of HB 488 highlights the power of states as ‘laboratories of democracy’ and demonstrates bitcoin’s potential to unite Americans regardless of their political perspectives.”
Provisions for Bitcoin mining
The bill explicitly supports bitcoin mining. Louisiana’s leadership in power production makes it an ideal location for such initiatives. The legislation provides the necessary legal framework to ensure that mining activities are not subject to restrictive measures that could hinder their growth.
PARIS, FRANCE – JANUARY 11: In this photographic illustration, a visual representation of digital… [+] the Bitcoin cryptocurrency is displayed in front of a Bitcoin course chart on January 11, 2024 in Paris, France. The first American Bitcoin ETF was authorized by the SEC (American Stock Exchange Commissioner) on Wednesday, January 10, 2024. Approximately ten of the world’s largest financial asset managers have submitted an application to the SEC to launch a Bitcoin. ETFs. After preventing bitcoin from entering Wall Street for more than 10 years, the Securities and Exchange Commission (SEC) has given the green light to exchange-traded funds (ETFs) invested in bitcoin. Photographic illustration by Chesnot
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Political and community support
HB 488 saw broad support across the political spectrum in Louisiana. The bill’s passage reflects a growing recognition of the importance of digital assets and the need to protect the rights of those who use them. Lawmakers highlighted the bill’s role in supporting innovation and economic development in the state.
Future implications
The enactment of HB 488 marks a significant milestone in protecting digital asset rights, positioning Louisiana as a leader in the cryptocurrency space. This law serves as a model for other states, paving the way for broader acceptance and integration of bitcoin into the mainstream economy.
Wright highlighted the risks associated with CBDCs: “CBDCs are simply an attempt to digitize what we have seen from central banks over the last century or more, which has led to dollar depreciation and inflation. 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 cannot let that CBDCs change this element of our culture.”
Louisiana’s progressive stance on bitcoin rights could inspire other states to adopt similar measures, contributing to a more cohesive and supportive regulatory environment for digital currencies across the United States. Continued advocacy and legislative efforts by groups like the Satoshi Action Fund play an important role in shaping the future of digital assets in the country. As Dennis Porter of the Satoshi Action Fund notes, “States will continue to drive policy innovation because they are incentivized to compete with each other. This bottom-up competition will drive changes across the country that will ultimately impact federal policy. “
By providing legal certainty and protecting the rights of bitcoin users, Louisiana is setting a strong example for others to follow, ensuring that the state and, by extension, the United States remains at the forefront of the digital financial revolution.