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Bill

SB 1095

central bank digital currency; ban

57th Legislature - First Regular Session Introduced by Jake Hoffman and 1 co-sponsor

Arizona bill prohibits state use of federal digital currencies; vetoed by governor, citing potential federal-state conflicts and enforceability concerns.

Vetoed by Governor
0
WeVote Research Nonpartisan
Bill Summary · SB 1095

Legislative bill overview

SB 1095 would prohibit Arizona from accepting, using, or facilitating central bank digital currencies (CBDCs) issued by the Federal Reserve or any other central bank. The bill bars state agencies, officials, and entities from conducting transactions in CBDCs and prevents recognition of CBDCs as legal tender within Arizona.

Why is this important

This reflects growing state-level concern about federal monetary policy control and financial surveillance, particularly regarding a potential federally-issued digital dollar. The bill represents a broader movement among some state legislatures to preempt or resist CBDC implementation at the state level before federal rollout occurs.

Potential points of contention

  • Federal authority conflict: CBDCs may fall under exclusive federal monetary policy jurisdiction, making state bans potentially unenforceable or unconstitutional
  • Practical enforceability: Difficult to prevent residents or businesses from using CBDCs if federally issued and widely adopted, raising questions about realistic implementation
  • Financial innovation restriction: Opponents argue the ban could limit beneficial payment system modernization and exclude Arizona from emerging financial infrastructure
  • Ideological divide: Reflects fundamental disagreement over government monetary control, privacy concerns, and state sovereignty versus federal prerogatives

Compiled from official sources — confirm details with the bill’s official record.

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