Reject CBDCs and Protect Financial Privacy Act
| Model Bill Info | |
|---|---|
| Bill Title | Reject CBDCs and Protect Financial Privacy Act |
| Date Introduced | July 27, 2023 |
| Date Finalized | August 28, 2023 |
| Type | Model Policy |
| Status | Final |
| Task Forces | Commerce, Insurance and Economic Development; Communications and Technology |
Reject CBDCs and Protect Financial Privacy Act
(1) Definitions: For the purposes of this chapter, the words defined in this section have the meaning given.
(a) “Financial Privacy” refers to the protection of a citizen’s nonpublic financial information.
(b) “Central Bank Digital Currency” refers to a digital medium of exchange, token, or monetary unit of account issued by the United States Federal Reserve System or any analogous federal agency that is made directly available to a consumer by such entities. The term includes a digital currency, a digital medium of exchange, or a digital monetary unit of account issued that is processed or validated directly by such entities.
(c) “State Agency” refers to any public institution of this state.
(2) Declaration:
WHEREAS, a Central Bank Digital Currency has been defined by the Federal Reserve as a digital form of central bank money that is widely available to the general public; and
WHEREAS, central bank money refers to money that is a liability of the central bank and not of a commercial bank; and
WHEREAS, countries around the world, including the United States, are evaluating whether or not to issue and how to issue and operate a Central Bank Digital Currency; and
WHEREAS, a Central Bank Digital Currency would fundamentally reimagine our banking and financial system by changing the relationship between citizens and the Federal Reserve; and
WHEREAS, a Central Bank Digital Currency would severely undermine financial privacy for consumer and citizens; and
WHEREAS, the availability of a Central Bank Digital Currency in the United States would undermine the important role banks play in financial intermediation; and limit credit availability because funds would move from commercial banks to the Federal Reserve where they cannot be lent back into the economy; and
WHEREAS, a Central Bank Digital Currency would fundamentally rewire our banking and financial system by changing the relationship between citizens and the Federal Reserve; and
WHEREAS, a Central Bank Digital Currency would exacerbate economic and liquidity crises,
WHEREAS, a Central Bank Digital Currency is likely to expand the Federal Reserve’s balance sheet and impede the transmission of sound monetary policy;
(3) Resolved:
(a) No State agency shall accept or require payment using a central bank digital currency.
(b) No State agency shall accept payment of taxes or fees in the form of a central bank digital currency.
(c) Agencies at the remit of the governor and relevant agencies shall undertake all good faith efforts to oppose testing, adoption, and implementation of a central bank digital currency.
(d) If any provision of this act or its application to any person or circumstance is held invalid, then the invalidity shall not affect other provisions or applications of the act that can be given effect without the invalid provision or application and, to that end, the provisions of this act shall be severable.
