If you are planning a trip to the Vatican City anytime soon, make sure you have plenty of Euros on hand before you head out. As of January 2013, Vatican City is “cash only” for purchases, and the ATM machines have been emptied.
Italy’s central bank has blocked electronic payments inside the tiny city-state because the Vatican has yet to fully comply with European Union safeguards to prevent money laundering.
Vatican City authorities say they are “scrambling” to remedy the situation. This could change anytime, but for now, make sure you have plenty of cash with you when traveling to Vatican City.