Can Digital Finance Reduce Government Debt Pressure and Financing Constraints? The Impact of Digital Finance on Regional Systemic Financial Risk

China's economy is constantly facing potential economic threats and regional economic risks. In view of China's huge economic scale and unstable regional economic and financial development, it is necessary to investigate and prevent the impact of regional financial risks on China's economic development. The development of digital finance has further changed the face of the financial sector and increased the uncertainty of systemic financial risks. Therefore, improving financial security and avoiding risks is particularly important. This problem must be solved. On this basis, the impact of digital financing on regional systemic economic risks will be analyzed. This paper shows that digital finance can effectively reduce the economic risk of the regional system, especially at the deep level. The analysis of medium-term financing mechanisms shows that digital financing can significantly alleviate the pressure of government debt, effectively alleviate local financing constraints, and thus reduce regional systemic financing risks. Effective external financial regulatory policies have alleviated digital financial risks to a certain extent and effectively reduced the impact of regional systemic financial risks. Only the eastern region can effectively reduce the economic risk of the regional system. This conclusion is entirely correct, and digital financing can effectively reduce broader regional and regional systemic financing risks compared to municipalities. The study will provide local authorities with useful information on how to prevent and respond to systemic financial risks and develop appropriate regulatory measures.