New Legislation in Louisiana Will Affect CBDCs and Bitcoin

The US state of Louisiana has put into law new regulations that outright ban Central Bank Digital Currencies (CBDCs), but it also safeguards Bitcoin (BTC).

This new law, HB 488, is meant to bring new investments into the state and protect consumers from being taken advantage of. It is also designed to encourage Bitcoin mining in the state at a time when countries around the world are pushing Bitcoin miners out.

House Bill 488 was signed into law by the state governor Jeff Landry and it has support from both major political parties. That includes Senator Jean-Paul Coussan and Representative Mark Wright.

The legislation keeps access open to Bitcoin and opens the door for further crypto business investments within the state. While many government bodies have a difficult time coping with cryptocurrency and making them fit snugly into the current mold of regulatory guidelines, Louisiana has taken the logical step of simply approving them.

What This Does for the Crypto Market

A move like this from a state government will help Bitcoin’s profile and improve consumer confidence in the crypto market. It adds new legitimacy to the digital tokens. Countries around the world have tried initiatives to bring cryptocurrency into the mainstream by making digital coins part of the national currency, with mixed results.

There is no adoption of Bitcoin here as a national or state currency, which is probably a wise move. Instead, the law builds protection in the current legal framework for Bitcoin, paving the way for further laws of this nature that will safeguard crypto trading and legitimize it.

We will see if this new law has any positive impact on Bitcoin or the wider market when it comes to value and pricing, but there are definite benefits to laws of this nature on the long-term lifespan of cryptocurrency.

ABOUT THE AUTHOR See More

Timothy St. John

Financial Writer - European & US Desks

Timothy St John is a seasoned financial analyst and writer, catering to the dynamic landscapes of the US and European markets. Boasting over a decade of extensive freelance writing experience, he has made significant contributions to reputable platforms such as Yahoo!Finance, business.com: Expert Business Advice, Tips, and Resources - Business.com, and numerous others. Timothy's expertise lies in in-depth research and comprehensive coverage of stock and cryptocurrency movements, coupled with a keen understanding of the economic factors influencing currency dynamics. Timothy majored in English at East Tennessee State University, and you can find him on LinkedIn.

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