In the past couple of weeks the Icelandic government seems to have been deliberating between multiple ‘options’ including the dropping of the island country’s current currency and opting for another currency already in existence. Speculation and suggestive talks within the government and market have been abound concerning possible moves the government might take.

Iceland is currently in the process of entering the European Union and adopting the euro as its currency if it gets accepted after talks and voting are over.

However, Iceland’s current talks to get into the European Union are overwhelmingly disliked by more than 56% of the Icelandic public.

On the contrary, more than 70% of roughly the 320,000 Icelandic citizens are in favor of dropping the weak krona.

Recently the Canadian ambassador Alan Bones suggested that both the Canadian and Icelandic governments are “ready to discuss” Iceland’s adoption of the Canadian dollar.

Other than the Canadian dollar, reports have even suggested that Iceland may drop its krona for the Japanese yen, the U.S. dollar or the Norwegian krona.

Another option, according to Iceland’s Prime Minister Jóhanna Sigurðardóttir, is to “fix” the krona’s exchange to the euro so that the currency of the island could be “sheltered” by the European Central Bank perhaps by the year 2015.

Yet it seems that the Social Democrats in the government of Iceland are more inclined towards entering the EU and adopting the euro as the choice avoids forgoing “monetary sovereignty” as opposed to the members of the Progressive Party.

The value of Iceland’s old krona depreciated significantly during the 2008 subprime mortgage and financial crisis which sent the currency tumbling down to pre-2000 levels (over 90%).

The financial stability of the country was further rocked by the massive bailout given by the International Monetary Fund to the country and the debt of Iceland’s banks along with other problems.