[Sir_Substance]

Same as the value of free speech. Civil forfeiture is a great example of a chilling effect based on seizure of property. There's nothing illegal about buying a car with cash, but you might not want to because if a US cop stops you and searches your car, he gets to just keep your money, so people think "eh, maybe not, wouldn't want to be mistaken for a drug dealer".

It's not healthy for a society when people start self-censoring their actions like that. If nothing else, it places banks in a privileged position where they can get away with more predatory behavior, because people are more likely to see them as a necessity.

It's for this reason that anonymous transactions are valuable. You really should be able to buy legal marijuana or books about firearm construction without worrying that people might judge you. Neither is illegal, if you want one (or both) you should have the freedom to purchase them. However, many people would choose not to buy them, simply because they know the bank might see it on their balance sheet if they ever have to call the support line, and they're worried about follow-on consequences to their insurance premiums or their job if knowledge about that purchase ever circulates. That's a chilling effect in action.