ANALYSIS ECONOMY AND FINANCE CHINA AND ITS CENTRAL BANK DIGITAL CURRENCY Is the E-Yuan a Role Model for Europe and the Euro System? Felix Klein and Nadim Baker February 2023 Central digital bank curren­cies are on the rise and are shaping a new financial order. The Chinese government is pulling ahead with the devel­opment of the E-Yuan and is setting standards. With the development of the E-Yuan, government opportunities come with risks as well as the potential for the comprehensive moni­toring of pay­ment activities. A European answer is crucial. This analysis of the Chinese approach and a review of the development of decentralised finance leads to recommenda­tions for the governance of European monetary policy.