§ 4-56-107 — Digital currency - Legislative findings - Prohibited - Definitions

Arkansas § 4-56-107

• Jurisdiction: Arkansas
• Title: 4

Text

(a) The General Assembly finds that: (1) Digital currency may be used for many common things, including without limitation payment applications or through online transactions; (2) Individuals feel strongly about their right to privacy; (3) An individual may be tracked through the use of digital currency concerning purchases and locations; and (4) Tracking an individual without his or her knowledge and consent or a legal right to do so should be prohibited. (b) As used in this section: (1) "Central bank" means a financial institution given privileged control over the production and distribution of money and credit for the United States; (2) "Central bank digital currency" means a digital form of central bank money that is available to the general public; (3) "Central bank money" means legal tender that is a liability of the central bank; and (4) (A) "Digital currency" means a digital form of money that is available to the general public. (B) "Digital currency" includes central bank digital currency. (c) A digital currency tracker shall not be used in this state to track an individual's purchases or location through the use by an individual of digital currency unless: (1) A warrant has been issued in a criminal or civil court case that expressly authorizes the tracking of the individual's purchases; or (2) The individual knows and consents to the digital currency tracker. (d) (1) The Right to Financial Privacy Act of 1978, Pub. L. No. 95-630, restricts the ability of a government authority to access or obtain the financial records of a customer of a financial institution. (2) The Right to Financial Privacy Act of 1978, Pub. L. No. 95-630, provides exceptions for when a financial institution does not need customer consent for the disclosure, including if a legitimate law enforcement inquiry is submitted to the financial institution. (3) To the extent the disclosure authority is restricted by a state statute that limits the ability of a financial institution to share information relating to a legitimate law enforcement inquiry, it could be determined to conflict with the Right to Financial Privacy Act of 1978, Pub. L. No. 95-630, and would be subject to challenge under federal law. (4) (A) This section does not prohibit a financial institution, or an officer, employee, or agent of a financial institution, from complying with the Right to Financial Privacy Act of 1978, Pub. L. No. 95-630, the Bank Secrecy Act, Pub. L. No. 91-508, or Federal Financial Institutions Examination Council regulations, including without limitation currency transaction reports and suspicious activity reports. (B) A financial institution, or officer, employee, or agent thereof, refusing a request for disclosure of disclosure of protected nonpublic information under this subsection in good faith, shall not be liable to any government authority.

Legislative History

Added by Act 2023, No. 596,§ 1, eff. 8/1/2023.