AZ SB1432

Prohibits federally recognized central bank digital currency (CBDC) from being used as legal tender in Arizona or as a medium of payment for any contract, security, or similar instrument in the state

Defines "legal tender" as any medium of exchange authorized by the U.S. Constitution or Congress for payment of debts, public charges, taxes, and dues, explicitly excluding federally recognized CBDC

Amends escrow disbursement rules to prohibit transfers from being settled or backed by federally recognized central bank digital currency

Updates multiple Arizona tax code sections (43-1021, 43-1022, 43-1121, 43-1122) to reference the new consolidated definition of "legal tender" and "specie" (coins with precious metal content)

Applies the CBDC prohibition to all contracts including commercial transactions, notwithstanding existing commercial code provisions under Title 47