This paper analyzes the impact of cryptocurrencies on global financial markets and financial institutions. From a theoretical point of view, the aims are to describe the theoretical aspects of cryptocurrencies through their emergence and development and the most important characteristics and gain insight into the theoretical determinants of global financial markets and cryptocurrencies as new types of digital currencies facing financial markets in recent years. From an empirical point of view, the aim of this paper is to investigate the impact of cryptocurrencies on the stability of global financial markets, and especially on the banking system. Cryptocurrencies are virtual money. Their main feature is easy transfer via an online platform, without a bank or other financial institution as an intermediary. Based on the analysis of the impact of cryptocurrencies on global financial markets and the global economy, ie the relationship between cryptocurrencies and financial stability risks, as well as the relationship between cryptocurrencies and price stability risks and the lack of legislation on cryptocurrencies, it can be concluded that cryptocurrencies do not currently affect global financial stability. markets. However, this situation may change in the future if cryptocurrencies start to be used to a greater extent and if the money supply increases above the influence of central banks. It has also been shown that cryptocurrencies do not currently affect the operations of banks and the banking system. However, even in this case, the situation may change if banks start accepting deposits in the form of cryptocurrencies and giving loans on that basis, ie if cryptocurrencies enter the banking system. In order for cryptocurrencies to have a positive impact on banking operations, it is necessary to eliminate or at least minimize their shortcomings, with an emphasis on high volatility. Legislation related to cryptocurrencies is also necessary.