Louisiana’s Groundbreaking Legislation

Key Provisions of the Louisiana Law

Louisiana recently passed a significant bill, House Bill 488, known as the “Blockchain Basics Act,” that affirms the rights of individuals to use and manage Bitcoin and other digital assets. This legislation, introduced by State Representative Mark Wright and supported by the Pelican Institute, includes several key provisions:

1. Right to Trade: Allows individuals and businesses to accept digital assets as a payment method for legal goods and services.
2. Self-Custody: Permits self-custody of digital assets using self-hosted wallets or hardware wallets, free from third-party control.
3. Mining and Node Operation: The law protects the right to mine Bitcoin, ensuring miners are not subject to excessive taxation or regulation. It also allows node operating and home digital asset mining, subject to certain conditions.

Additionally, in 2022, Governor John Bel Edwards signed House Bill 802 into law, which permits Louisiana banks to hold Bitcoin and other digital assets and integrate these assets into the traditional financial system. This measure provides secure storage options for cryptocurrency holders and boosts the state’s appeal as a hub for crypto-related businesses​.

Ban on CBDCs

In tandem with these measures, the U.S. House of Representatives passed the CBDC Anti-Surveillance State Act, which aims to prevent the Federal Reserve from issuing a Central Bank Digital Currency (CBDC) without explicit congressional approval. This act would protect privacy and prevent governmental overreach into financial transactions if signed into law.

Why New Hampshire Should Consider Similar Measures

Privacy and Financial Autonomy

In its final report, the New Hampshire Governor’s Commission on Cryptocurrencies and Digital Assets emphasized the state’s commitment to protecting privacy and personal property. The commission recommended establishing a standing committee to monitor developments that could disproportionately burden citizens’ privacy or property interests when conducting activities with crypto-assets, including using self-custody technologies.

Benefits of Self-Custody

Self-custody of cryptocurrencies is crucial for maintaining security, control, and privacy over digital assets. It allows individuals to manage their own funds without relying on third-party services, reducing the risk of hacks and financial mismanagement by centralized entities. Self-custody also supports financial privacy and autonomy, which are core principles of decentralized cryptocurrencies.

Addressing Concerns with CBDCs

Central Bank Digital Currencies pose significant privacy concerns due to their potential for increased government surveillance and control over financial activities. By emulating Louisiana’s ban on CBDCs, New Hampshire can protect its citizens’ financial privacy and autonomy.

Economic and Technological Leadership

Adopting measures similar to Louisiana’s can position New Hampshire as a leader in the cryptocurrency space. By fostering a supportive regulatory environment, driving economic growth, and technological innovation, the state can attract crypto-related businesses and investments.

Conclusion

Louisiana’s proactive stance on cryptocurrency regulation, particularly its support for Bitcoin rights and the ban on CBDCs provides a model that New Hampshire could benefit from emulating. By protecting the right to self-custody and resisting the imposition of CBDCs, New Hampshire can uphold its longstanding tradition of protecting privacy and personal property while promoting financial autonomy and innovation.

References

• Forbes – Louisiana Passes Bill To Defend Bitcoin Rights And Ban CBDCs
• CoinGape – Breaking: Louisiana Passes Law to Protect Bitcoin Access and Ban CBDCs
• The Daily Hodl – US State Passes Legislation Allowing Financial Institutions To Offer Crypto Custody Services
• New Hampshire Governor’s Commission on Cryptocurrencies and Digital Assets