The monetary unit of Iceland is the króna (ISK). Icelanders use credit and debit cards for almost all purchases, and cards are accepted in most shops and services. Foreign cash is rarely accepted. Most terminals use chip verification and require a four-digit PIN.
Coins are issued in 1, 5, 10, 50 and 100 ISK, and banknotes in 500, 1,000, 5,000 and 10,000 ISK. Major currencies can be exchanged at the airport and at banks. Banks are generally open on weekdays, and ATMs are widely available for cash withdrawals. Iceland is not a member of the European Union and does not use the euro.
The word króna means “crown” and shares its origin with the Danish krone, Swedish krona and Norwegian krone. Iceland began issuing its own banknotes in 1885; Danish currency was used before that. The first króna coins were introduced in 1922 after the dissolution of the Scandinavian Monetary Union. The Central Bank of Iceland is responsible for issuing currency and monetary policy (Central Bank of Iceland - Exchange rate).