Economic and Financial Review


Central Bank of Nigeria


money, central banks, digital age, digital currency, CBDC forces, innovation diffusion mode


As a medium of exchange, money has evolved throughout the ages from barter system to fiat money issued by central banks. The digital age has ushered in new realities for central banks, transforming the nature of money and challenging monetary authorities to new roles required to implement their core mandate of maintaining monetary and price stability. The main purpose of this paper is to examine the changing roles of central banks occasioned by the challenges posed by digitalisation. Based on available literature surveyed, this changing role is principally evident in the recent move by most central banks to issue their own digital currencies with a view to achieving orderly conduct of payment systems already threatened by the proliferation of private digital currencies. This paper submits that in order to enhance their chances of success and maintain trust in their digital currencies, central banks should continuously innovate, in partnership with private firms, as well as rise to the challenge of the key forces likely to shape the path of any Central Bank Digital Currency project including changing user needs, competitive pressure from private digital currencies, complex regulations and cybersecurity threats.

Author Bio

Dr. Uche Uwaleke is a Lecturer of the Department of Banking & Finance, Nasarawa State University Keffi.

Publication Title

CBN Economic and Financial Review





First Page


Last Page



E40, E58, O31

Recommended Citation

Uwaleke, Uche (2022). The Evolution of Money and the Changing Role of Central Banks in the Digital Age. CBN Economic and Financial Review, 60(4). 17 - 32.



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