SB1281 bans the use of federally recognized central bank digital currency (CBDC) as a form of payment or contract in Arizona. It also ensures that CBDC is not considered legal tender under Arizona law, including in the Uniform Commercial Code.
The Arizona State Senate passed SB1281 on February 29, 2024 by a vote of 16 to 12. We have assigned pluses to the ayes because Article I, Sections 8 and 10 of the U.S. Constitution state that only Congress has the power to coin money. States should take steps to return to the gold standard and embrace the use of real money. Digital currency can be easily tracked, allowing the government to monitor all financial transactions. This could lead to unconstitutional and extensive surveillance of individuals’ financial activities, eroding personal privacy and potentially freezing assets, which is already happening in other countries.