The official currency of Italy is the Euro (€). Italy adopted the Euro on January 1, 1999, for electronic transactions and introduced Euro banknotes and coins in circulation on January 1, 2002, replacing the former national currency, the Italian Lira. The Euro is used by 19 of the 27 European Union countries, collectively known as the Eurozone. It was designed to facilitate easier trade and travel within Europe, providing a common currency that enhances economic stability and integration among member states.