Pennsylvania Senate Bill SB797

Pennsylvania 2023-2024 Regular Session

• Introduced: 6/26/23
• Refer: 6/26/23

Caption

In general definitions and principles of interpretation, further providing for general definitions.

Impact

The introduction of this bill and its proposed definitions would have significant implications for state laws concerning the treatment of digital currencies. This clarification is vital as financial institutions evolve and adapt to technological advancements in currency management and transactions. By defining CBDC within the statutory framework, the state of Pennsylvania may enhance its readiness for future financial innovations and promote a more structured environment for the integration of digital currencies into the existing monetary system.

Summary

Senate Bill 797 aims to amend Title 13 of the Pennsylvania Consolidated Statutes to include a comprehensive definition of 'central bank digital currency' (CBDC). The legislation is introduced to clarify the current legal framework surrounding digital currencies in the Commonwealth, particularly as they relate to the evolving landscape of money and banking. By explicitly stating that CBDC is issued by national and foreign monetary systems, the bill seeks to establish clear regulatory guidelines that would govern digital monetary units issued by authoritative entities such as the Federal Reserve and foreign central banks.

Sentiment

The general sentiment surrounding SB797 appears to be positive with proponents endorsing the need for updated legal definitions in response to the rapidly changing financial technology sector. Supporters argue that establishing a formal definition of CBDC is a progressive step that would foster a more secure and transparent financial environment. However, there may be concerns regarding the implications for privacy and individual rights with the rise of state-backed digital currencies, indicating a potential area for debate among legislators and stakeholders.

Contention

While the overall sentiment seems largely supportive, there may be contention about the potential implications of this bill on privacy and the scope of government control over digital financial transactions. Critics might argue that such definitions could lead to excessive regulation or monitoring of personal transactions. The bill raises important discussions surrounding the balance between innovation in financial technology and safeguarding consumer rights and privacy, positioning it at the intersection of technological advancement and regulatory oversight.