Bill > SB1095

This bill proposes to ban the use of federally recognized central bank digital currency (CBDC) as legal tender in Arizona. The bill defines "legal tender" to include any medium of exchange authorized by the U.S. Constitution or Congress, explicitly excluding central bank digital currency. Under the proposed law, federally recognized CBDC cannot be used as legal tender or as a medium of payment for contracts, securities, or other financial instruments in the state. The bill amends multiple sections of Arizona Revised Statutes to reinforce this prohibition, including definitions related to money, banking, and financial transactions. Specifically, the legislation adds provisions that prevent the use of CBDC in various financial contexts, such as escrow transactions, trust businesses, and tax-related financial activities. The bill also modifies existing definitions of terms like "money" and "legal tender" to explicitly exclude central bank digital currency, essentially creating a state-level barrier against the potential future implementation of a federal digital currency. The changes are designed to protect traditional forms of currency and prevent the potential adoption of a centralized digital monetary system at the state level.

Budget and Finance, Business and Industry

https://apps.azleg.gov/BillStatus/BillOverview/81924