The currency of Italy is the Euro (€). Italy adopted the Euro on January 1, 1999, initially using it for electronic transactions and accounting. Physical Euro banknotes and coins were introduced later, on January 1, 2002, replacing the Italian Lira. The Euro is used by 19 of the 27 European Union member countries, forming the Eurozone. It plays a crucial role in facilitating trade and travel within Europe, offering a stable currency standard and economic integration among member states.