The history of banknotes in the Vatican is relatively short but fascinating. Unlike many other countries, the Vatican did not issue its own banknotes until well into the 20th century, using mainly coins and the Italian lira as a medium of exchange.
Current banknotes in circulation
Since 2002, the Vatican has used the euro as its official currency, issuing its own coins but not banknotes. The euro banknotes circulating in the Vatican are the same as those used throughout the euro zone. However, the Vatican has a special agreement with the European Union that allows it to mint a limited number of euro coins with its own designs, highly prized by collectors.
Old Vatican banknotes
Before the adoption of the euro, the Vatican issued its own banknotes for a brief period. In 1929, following the Lateran Pacts establishing the Vatican City State, the Vatican lira was introduced. The first banknotes were issued in 1929 and continued until 2002. These banknotes, now considered collector's items, featured images of popes, Vatican buildings and religious symbols. An important milestone was the 1942 issue, which included banknotes with the portrait of Pope Pius XII, marking the first time a living pope appeared on a Vatican banknote.
