The development of fintech and the increasing maturity of blockchain and other technologies have created conditions for the emergence of digital currency. Private digital currencies are unregulated, are prone to financial risks, and can negatively impact on the stability of the financial system. The research and development of the central bank's digital currency innovates the method of currency issuance, circulation and regulation, and can improve the transaction efficiency of the digital economy. In recent years, many countries, including China, have paid close attention to the developing trends of central bank digital currencies and they have made some progress through a focus on research, development and scenario applications. The issuance and application of central bank digital currency will change the balance sheet of the central bank, change the functions of the central bank. Central bank digital currencies will also improve the transmission efficiency of monetary policy, improve the effectiveness of any given money supply, and make economic activities more transparent. Nevertheless, central bank digital currencies also raise the need for new forms of system security. Therefore it is urgent to establish a scientific and effective regulatory system. Issues such as liquidity supervision, survey statistics and real-time supervision, and anti-money laundering capabilities should become the focus of supervision.
