Italy adopted the Italian lira in 1862 as the unified currency of the newly formed Kingdom of Italy.
Italian unification brought together territories that had used different currencies, including the Piedmontese lira, the Neapolitan piastre, the Tuscan florin, and currencies linked to Austria. A common monetary unit was needed for taxation, trade, and administration across the new kingdom.
The lira was divided into 100 centesimi and was initially aligned with the French franc through the Latin Monetary Union system. Italy joined that monetary arrangement in 1865, helping standardize the weights and fineness of several gold and silver coins among member countries.
The lira remained Italy’s currency until euro banknotes and coins replaced it in 2002. Euro accounting began earlier, in 1999. The Italian lira should not be confused with the separate lira currencies historically used in places such as Malta, Turkey, or the former Ottoman territories.