Modern Economics & Management Forum

With the rapid development of digital technology, digital currency, as a new financial form, is profoundly changing the operation mode of the traditional financial system.However, the anonymity and decentralization of digital currencies have also brought about many financial security risks, such as technological risks, market risks, legal risks, etc., which not only threaten the safety of investors' assets, but also may have an impact on financial stability.This paper analyzes the financial security risks brought by digital currency from multiple dimensions such as technology, market and law, and explores the corresponding preventive mechanisms, aiming to provide theoretical references for the healthy development of digital currency and policy suggestions for maintaining financial security and stability.