Kristin, I just checked on Oanda.com and the Iceland Krona is trading at around 114 to the $ today and at 155 to the Euro, so it appears they're still using and trading the currency. Check the Iceland Forum on Trip Advisor--credit cards are accepted everywhere and you'd be best off sticking with cc's when you can. There's also ATMs everywhere if you need a few Kroner. Although the excange rate with the dollar is pretty good, Iceland has high inflation, so things are still pretty expensive there. Also, there aren't any small bills, so if you use cash, you end up with a lot of small coins at the end of your trip. We still have a bunch from our last trip there, but you can always turn them in at the airport before you leave.