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Senate committee passes bill banning federally issued central bank digital currency as legal tender in Arizona
Summary
Senate Bill 1095 prohibits a federally recognized central bank digital currency (CBDC) from being legal tender or the medium of payment under Arizona law; supporters said CBDCs threaten financial autonomy, opponents warned the ban could block regulated digital-currency innovations.
The Senate Finance Committee returned Senate Bill 1095 with a do-pass recommendation after a divided debate. SB 1095 would prohibit a federally recognized central bank digital currency (CBDC) from being used as legal tender in Arizona, from being the subject or medium of payment of contracts or securities, and from being included in definitions of money under the Uniform Commercial Code and Arizona Revised Statutes.
Sponsor Senator Hoffman said CBDCs concentrate control over financial transactions and could be used to track or limit citizens' conduct; she and other supporters cited examples from jurisdictions with centralized digital currency systems and characterized a state-level prohibition as a protection for personal financial autonomy. Supporters argued the bill aligns with recent federal action limiting federal CBDC development.
Senator Mitzi Epstein opposed the bill, saying it could preclude regulated, transparent digital-currency models that layer regulatory protections on top of blockchain technology. Epstein said digital-currency technology could be used to improve transparency and consumer protections if paired with regulation; she voted against the measure.
Committee vote: 4 ayes, 3 nos. SB 1095 now advances to the full Senate.
