The CBN introduced the cashless policy in April 2011 with the objective of promoting the use of electronic payment channels instead of cash. This study examines the cashless policy and the factors that could influence its sustainability in Nigerian economy. Specifically, it examines factors such as ATM transaction, Web transaction, POS transaction, Mobile payment transactions, broad money supply, fiscal policy, exchange rate, credit to the private sector and their implications on cashless policy proxy by currency in circulation. Ex-post facto design was adopted. Data were collected through CBN statistical bulletin covering the period 2009 to 2021. Analyses were carried out using descriptive statistics, multiple regression and granger causality. Findings revealed that ATM transactions, mobile payment, web payment, money supply, fiscal policy had reducing effect on currency in circulation. On the other hand, POS transactions, credit to the private sector and exchange rate increased the amount of currency in circulation. It concluded that the cashless policy of the CBN can only be successful when some of the selected studied factors are put into consideration. The study recommends urgent need to address the problem of exchange rate instability, growing concern with the cash available with POS operators who now charge exorbitant fees for cash withdrawal and credit to the private sector.