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ARIZONA HOUSE OF REPRESENTATIVES57th Legislature, 2nd Regular Session |
Senate: GOV DP 4-3-0-0 | Third Reading 16-11-3-0-0House: COM DP 6-3-0-3 |
SB1432: central bank digital currency; ban
Sponsor: Senator Hoffman, LD 15
Caucus & COW
Overview
Prohibits federally recognized Central Bank Digital Currency (CBDC) from being recognized as legal tender or used as a medium of payment of any contract, security or other similar instrument.
History
CBDC is generally defined by the Federal Reserve as a digital form of central bank money that is widely available to the general public.
On January 23, 2025, Executive Order 14178 prohibited agencies from undertaking any action to establish, issue or promote CBDCs within U.S. jurisdiction and terminated all CBDC related initiatives. The Executive Order defined CBDC as a form of digital money or monetary value, denominated in the national unit of account, that is a direct liability of the central bank.
Arizona's Uniform Commercial Code regulates commercial and secured transactions in Arizona, including sales of goods, leases of personal property, negotiable instruments, bank deposits and collections, rights and obligations connected with fund transfers, letters of credit, investment securities and secured transactions. Under the Uniform Commercial Code, money is defined as a medium of exchange currently authorized or adopted by a domestic or foreign government, including a monetary unit of account established by an intergovernmental organization or by agreement between two or more countries (Title 47, A.R.S.).
Provisions
1. Prohibits federally recognized CBDCs from being used as legal tender or from being the subject or medium of payment of any contract, security or other similar instrument in Arizona, including contracts relating to commercial transactions. (Sec. 1)
2. Establishes legal tender as any medium of exchange, including specie, that is authorized by the U.S. Constitution or Congress for the payment of debts, public charges, taxes and dues. (Sec. 1)
3. Defines specie as coins that have precious metal content. (Sec. 1)
4. Excludes federally recognized CBDC from the definition of money relating to the Uniform Commercial Code and from the definition of legal tender. (Sec. 1, 10)
5. Prohibits transfers made by an escrow agent from an escrow account from being settled or backed by federally recognized CBDC. (Sec. 2)
6. Establishes legal tender and specie as uniform statutory definitions. (Sec. 1)
7. Makes technical and conforming changes. (Sec. 3-10)
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11. Initials PB SB 1432
12. 2/19/2026 Page 0 Caucus & COW
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