Bitcoin, the leading cryptocurrency asset in the financial sector, is set to garner more recognition as the state of Louisiana has enacted a historic law that will safeguard BTC access while outlawing the use of Central Bank Digital Currencies (CBDCs).
New Bill Protects Bitcoin Access In Lousiana
Dennis Porter, the Chief Executive Officer (CEO) and co-founder of the Satoshi Action Fund, shared the update on the X (formerly Twitter) platform on Monday. This House Bill 488 upholds the state’s residents’ unimpeded ownership and use of Bitcoin, positioning it as a champion of financial and personal liberty.
The Louisiana Legislature’s adoption of this Act places the state apart from broader federal tendencies toward further regulation of the cryptocurrency industry and emphasizes the state’s commitment to creating a favorable environment for cryptocurrencies and digital assets.
Representative Mark Wright of Louisiana and Senator Jean-Paul Coussan of Louisiana are the sponsors of the law that legalizes Bitcoin, including several safeguards for the cryptocurrency in the nation. By allowing Bitcoin transactions without the need for additional legislation, the bill ensures that residents can safely store their assets in wallets and improve their financial autonomy and flexibility in transactions.
In addition, the law expressly forbids the issuing or use of CBDCs inside the state due to concerns about financial freedom, privacy, and political control. It is indicative of the growing uncertainty of CBDCs, which critics believe might result in unprecedented surveillance and centralized control over financial operations. With its stance against CBDCs, Lousiana is demonstrating its support for a less regulated and more transparent financial system and advocating for decentralized assets like Bitcoin.
It is worth noting that many other states and federal agencies are still considering the possibility of implementing CBDCs, which can drastically adjust the financial landscape in the US. However, with stringent laws like this, the idea might witness a setback, offering a better financial landscape.
Broader Inception Of The Act
Louisiana is the latest state in the US to adopt the pro-Bitcoin bill this year. Other nations that have done so include Oklahoma, Montana, and Arkansas.
Last month, the state of Oklahoma, under the leadership of Governor Kevin Stitt, passed the bill into law, expected to become effective from November 1, 2024. The proposal, which is supported by Senator Coleman and Representative Samuel Brian Hill, creates important safeguards for holders of Bitcoin and other digital assets.
According to Dennis Portal, with this act, Oklahoma will be able to defend the right to self-custody, the right to spend BTC and digital assets, the right to run a node, and the right to mine BTC.
Furthermore, it will prohibit the imposition of extra taxes on BTC and other digital assets used for payments, safeguard the ability to mine BTC from home, and remove the requirement to obtain a money transmitter license for miners and digital asset validators to operate.