In Iceland, 1 króna = 100 aurar, each of which is worth — well, nothing, really. In 2008, when the world economy tanked, American banks were deemed “too big to fail”; Icelandic banks, not that big, did in fact fail, and Icelanders are ready to ditch the króna in favor of something with a bit more stability. The euro, maybe? Not a chance, with bits and pieces of the Eurozone rapidly circling the drain. Better to look westward, to the dollar. That is, the Canadian dollar:
As resource economies, Canada and Iceland’s economic cycles are more likely to be in sync, loonie proponents argue. Also, Canada is home to about 200,000 people of Icelandic descent, more than anywhere else in the world.
Almost, in fact, as many as Iceland itself, which has barely more than 300,000 people.
And technically, Canada doesn’t have to consent to this plan: if Iceland were to buy enough loonies to replace its existing krónur — about 300 million would be enough to cover krónur in circulation — the system could be in place in a matter of days.
A further possibility presents itself: a newly-autonomous Greenland, which sits between Canada and Iceland and whose economy is also largely based on resources (mostly fishing, some mining), could conceivably ditch its Danish currency in favor of Canadian dollars, though I wouldn’t expect this to happen so long as Denmark is subsidizing Greenland’s transition to independence.