bavarikon4UPaper money in Iceland
Iceland came under Danish rule in the 14th century and remained part of the Kingdom of Denmark until 1914. Iceland gained independence in 1918 but remained part of the Danish union. It was not until 1944 that the union was dissolved and the Republic of Iceland was established as a now fully sovereign state.
The first paper money issues in Iceland took place under Danish rule. The Copenhagen assignment, exchange and loan banknotes circulated between 1778 and 1815. These contained a note on the reverse side regarding their validity in Iceland. The affiliation to Denmark is also reflected in the currency: The Danish rigsdaler was the currency until 1874, followed by the Danish krone from then on. It was not until independence in 1918 that a separate currency, the Icelandic krona, was introduced.
Landsbanki Islands was the first bank in Iceland to issue banknotes. The state bank was founded in 1885 and was granted the right to issue banknotes. Initially, it only issued 5, 10 and 50 krónur banknotes but it added higher denominations later on. The link with Denmark is clearly visible on the banknotes: a portrait of the King of Denmark, Christian VIIII (1818-1906) can be seen as the subject.
Another bank was granted the right to issue banknotes between 1904 and 1920: the private Bank of Iceland. It issued banknotes in denominations of 5, 10 and 50 krónur, which also show the Danish king and Iceland's nature. In the 1920s, the state itself issued paper money until 1928, when the Bank of Iceland regained the monopoly on issuing banknotes. Its independence from Denmark is reflected on the banknotes: personalities from Iceland's politics and history are now depicted instead of the Danish king.
>> This collection is part of the holdings of "Paper money in Europe" of the Giesecke+Devrient Stiftung Geldscheinsammlung (Giesecke+Devrient foundation: collections of bank notes).