SB 1095
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ARIZONA HOUSE OF REPRESENTATIVES
Fifty-seventh Legislature
First Regular Session
Senate: FIN DP 4-3-0-0 | 3
rd
Read 17-12-1-0-0
House: COM DP 6-4-0-0
SB 1095: central bank digital currency; ban
Sponsor: Senator Hoffman, LD 15
Caucus & COW
Overview
Outlines prohibitions relating to the use of federally recognized central bank digital currency
(CBDC).
History
According to the Federal Reserve, a CBDC is generally defined as a digital liability of a
central bank that is widely available to the public. In the United States, Federal Reserve
notes are the only type of central bank money available to the public. A CBDC would enable
the public to make digital payments.
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 establi shed by an
intergovernmental organization or by agreement between two or more countries (Title 47,
A.R.S.).
Various statutes currently provide a definition of legal tender and includes specie as a type
of legal tender. Legal tender, as used in various statutes, is defined as a medium of exchange,
including specie, that is authorized by the United States Constitution or Congress for the
payment of debts, public charges, taxes and dues. Specie is defined as coins having precious
metal content.
Provisions
1. Prohibits a federally recognized CBDC from being:
a) used as legal tender; or
b) the subject or medium of payment of any contract, security or other similar
instrument in this state, including contracts relating to commercial transactions. (Sec.
1)
2. Prohibits transfers made by an escrow agent from an escrow account from being settled
or backed by federally recognized CBDC. (Sec. 2)
3. Excludes a federally recognized CBDC from the definition of money relating to the
Uniform Commercial Code and from the definition of legal tender. (Sec. 1, 10)
4. Establishes a uniform statutory definition for legal tender and specie. (Sec. 1)
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note SB 1095
Initials PB Page 2 Caucus & COW
5. Makes conforming and technical changes. (Sec. 2-10)