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Iceland - currency, credit and ATM's

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June trip to Iceland is planned.
The car rental company quoted in Euros but I think the Icelandic currency is krona.
Confusing - which currency is used?

Once you leave Rejkyavik, do most gas stations, restuarants, shops, hotels take credit card?
or do we need to keep a good supply of cash with us as we travel?

Are there ATM's in most of villages on the Ring Road?

SUggestions welcomed.

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