According to China Business News, He Dong, deputy head of the International Monetary Fund (IMF) ’s currency and capital markets department, said in an interview recently that from a technical perspective, the rise of digital currencies is due to“ tokenization ”technology. Achieve breakthroughs and accelerate. From an economic perspective, the rise of digital currencies also reflects supply and demand factors. At the demand level, digital currency can realize inclusive finance, and it can also partially solve the existing pain points of cross-border payments. At the supply level, breakthroughs in digital technology have allowed more customized currencies to be introduced and used. He Dong pointed out that the use and trading of tokens are also subject to economies of scale, and the adoption of digital currencies may be very rapid. Regulatory challenges are also daunting, as multinational stablecoins may be involved in financial services in many jurisdictions. However, He Dong also said that there are still many uncertainties as to whether these digital currencies with different denominations of fiat currencies can be used on a large scale. More fundamentally, the future of private digital currencies and sovereign fiat currencies depends on the credibility of large enterprises or private digital networks compared to sovereign governments. He Dong further pointed out that in the face of the challenge of private digital currencies, central banks of all countries need to keep pace with the times to ensure that they are not out of the game of the digital economy. To this end, central banks in various countries need to continue to make their liabilities (central bank currency or fiat currency) more attractive, so that the private sector is still willing to use the fiat currency issued by its central bank in the digital age. One feasible solution is to issue central bank digital currencies.