1 Króna Skillemønt type I

Iceland's State Treasury began issuing its own small-denomination currency — skillemønt, literally "change money" — partly because coin supplies from Denmark had become unreliable following the disruptions of the First World War. The 1920 series was among the earliest paper money printed domestically in Iceland, with Prentmiðstöðin Gutenberg in Reykjavík handling production rather than the established European security printers typically engaged for such work.

That domestic printing origin is worth noting. Security printing infrastructure in Iceland at the time was rudimentary, and the notes reflect it — simpler design execution than contemporary Scandinavian issues, with limited anti-counterfeiting sophistication.