Investigating the Impact of Cryptocurrencies on the Modern Banking System

This paper deals with an analysis of contemporary monetary instruments, specifically digital currencies and cryptocurrencies as well as their impact on the monetary, financial and economic future around the world. As the central banks of the countries of the world are still the main followers of all the major global financial trends, we will pay special attention to their response to the challenge posed by the monetary constructs coming from the private sector. The development of digital cryptocurrencies will result in the development of new financial and monetary instruments and media, which will lead to benefits and opportunities still undiscovered. Finally, we will make a brief analysis of the legal framework of digital currencies and cryptocurrencies and examine the approaches of individual countries to their legislation.