Digital Euro Alternative

Definition ∞ A Digital Euro Alternative refers to a digital currency or payment system that could potentially serve similar functions to a central bank digital currency (CBDC) for the Eurozone, but is not issued by the European Central Bank. This might include stablecoins pegged to the Euro or private sector digital payment solutions. Such alternatives offer digital payment capabilities without direct state backing or control. They often compete with or complement official digital currency initiatives.
Context ∞ The concept of a Digital Euro Alternative is a key discussion point amidst the European Central Bank’s exploration of a digital euro. News articles frequently compare the potential benefits and drawbacks of private digital currencies versus a public CBDC. The debate involves questions of financial stability, privacy, technological infrastructure, and the role of commercial banks in a future digital payment landscape.