central bank digital currency; ban

SB 1095 prohibits the use of federally recognized central bank digital currency (CBDC) as legal tender or for payments in Arizona, affecting all contracts, securities, and commercial transactions within the state. The bill amends escrow and trust laws to ban CBDC-backed transfers, requiring all payments to settle exclusively in U.S. dollars through traditional means like wire transfers or checks. It defines "legal tender" to exclude CBDC and explicitly states that distributed ledger technology transfers must maintain dollar-based value stability without CBDC backing. The bill passed the legislature on May 5, 2025, but was vetoed by the governor on May 12, 2025, so it remains unenforced.