Based on value-added contribution to measure the application intensity of digital technology, this paper uses the industry level input-output data of 74 countries at the period from 2002 to 2020 to study its impact on Global Value Chain (GVC) status, and clarify its mechanism and differential effect of technology sources. It is found that: digital technology can significantly improve GVC status of various industries. Among them, domestic digital technology is the leading force, introduction of foreign technology restricts the above improvement effect. The key move to leap to the middle and high end of GVC is to realize the “self-reliance” of digital technology. Mechanism analysis shows that digital technology can promote GVC status by improving productivity and international competitiveness of intermediate products. In contrast, digital technology can improve GVC status in developed countries to a greater extent, and introduction of foreign technology has no obvious restriction on this impact. Such restriction effect is particularly prominent for developing countries. Meanwhile, for countries with high GVC status and countries with high application intensity of digital technology, digital technology has a stronger role in promoting its GVC status. The above conclusions have important implications for China to move towards the high-end of GVC.