HB1720

House Bill 1720 establishes regulations concerning the use of digital currency in Arkansas to protect individual privacy. The bill prohibits the use of digital currency trackers to monitor an individual's purchases or location unless the individual provides consent or a court issues a warrant for such tracking. It provides definitions for key terms, including 'central bank digital currency' and 'digital currency.' The legislation asserts that tracking an individual’s financial activity without consent or legal authority should be prohibited. Additionally, the bill explicitly states that financial institutions must still comply with federal laws, such as the Right to Financial Privacy Act of 1978 and the Bank Secrecy Act. It also protects financial institutions from liability if they refuse to disclose nonpublic information in good faith. The bill serves to limit state-level oversight and tracking of digital financial transactions.