Kronur, krona or sometime called Icelandic crown is an official currency of Iceland with code ISK and symbol kr. After the Seychelles, Iceland has its own monetary policy and currency. It is the 2nd smallest country by population. In 1874, Danish krone was the first currency introduced to Iceland. In 1885, Iceland starts issuing its own banknotes. In 1918 the Krona was parted from Danish krone afterwards the dissolution of the Scandinavian Monetary Union at World War I and Icelandic dominion from Denmark. The ever first Icelandic coin was issued in 1922. In 1925, the Icelandic krona was pegged with British pound for the next 14 years until 1939 spring. Later, Icelandic krona was also pegged to US dollar which was kept until 1949.
Iceland doesn’t use euro because it is not member of European Union. The currency of Iceland is highly low volume but strongly managed by its central bank. In term of value, Icelandic currency is swift to change against Canadian dollar, US dollar and other Nordic currencies. In Iceland, most shops accept electronic payments. Other currencies are hardly accepted in Iceland. Computer per capita use in Iceland is highest in the world, even higher than United State of America and United Kingdom.
The central bank of Iceland is responsible authority for issuing of currency. Recently banknotes of 500, 1000, 2000, 5000, 10,000 krona and coins of 1, 5, 10, 50, 100 krona are generally circulation in Iceland economy.