Wang Jianwen, chief analyst of the financial industry of Guosen Securities Economic Research Institute, analyzes how to understand the central bank's digital currency. Wang Jian said in the article that the emergence of bitcoin means a new currency different from the sovereign currency of each country. Bitcoin is based on blockchain technology. There is no single issuer, and all transactions are recorded at all nodes of the network, which is difficult to tamper with. Bitcoin also wants to control its circulation and maintain its currency by limiting the amount of future issuance. But precisely this kind of goodwill has deviated from the essence of money. This new type of digital currency, which is completely different from the original sovereign currency, is called "digital currency." Obviously, central banks that have the right to issue currency rights in various countries will not welcome this new thing aimed at depriving them of their currency distribution rights. Therefore, it is a natural inference that the central bank is preparing to research and launch, not digital currency, but digital cash. Although it caters to the public, it is also called "digital currency." At the end of the article, Wang Jian also said that although Bitcoin itself has deviated from the essence of money, the introduction of regional chain technology has made it possible to control the risk of double flowers. The application of the blockchain enables the entire network to identify the only transaction, thus basically eliminating the risk of illegal copying of digital cash, and the security of circulation is greatly improved. The ability to join smart contracts and increase the personalization of some transactions can also help to reduce the currency circulation and transaction costs, and improve the service level of the payment link. Therefore, he believes that the central bank is developing a digital cash that uses a new circulation technology rather than a digital currency that is independent of the renminbi.