HB 2039 / SB 207

This bill amends Tennessee’s Consumer Protection Act to define and then broadly restrict “programmable money”—digital currency encoded with rules that can limit where, when, or how funds are spent. It explicitly excludes both central bank digital currency (CBDC) and programmable money from the statutory definition of a “deposit account,” preventing banks from treating these new media as ordinary bank deposits. Most importantly, it makes it unlawful for anyone (including merchants) to force use of programmable money in transactions, and it forbids issuers of programmable money from denying or restricting payments on the basis of political views, religious beliefs, medical history (including vaccination status), social credit scores or any of a sweeping list of protected characteristics and activities.

If an issuer does deny a transaction, the bill requires them—on request—to provide a detailed, itemized explanation within 30 days. Failure to comply is treated as an unfair or deceptive practice under the Tennessee Consumer Protection Act, enforceable by the Department of Financial Institutions and the Secretary of State, and subject to private lawsuits with statutory, actual, and enhanced punitive damages.

By blocking any requirement to adopt CBDCs or similarly programmable digital currencies—and by outlawing “social credit”–style transaction controls—this measure safeguards citizens’ freedom to choose payment methods and shields them from ideological or behavioral blacklisting. At the same time, it leaves intact issuers’ ability to refuse transactions that are outright criminal.