By accessing the European Union in 2013, the Republic of Croatia committed itself to introducing euro as the official currency as soon as all conditionshad beenmet. This final work explores the conditions and define prerequisites needed to rationally assess the introduction of euro as the official currency. The essay begins with explanations of some key terms, such as currency, money, Croatian kuna, euro and the European Monetary System, i.e. the former Economic and Monetary Union of the European Union as a separate optimal currency area, in order to facilitate the comprehension of the Maastricht Treaty terms that are needed to be met prior to joining the euro area, that is, to offer an explanation of advantages and disadvantages of the introduction of euro based on recently elaborated analyses. Elimination of currency risks, more stable exchange rates, more stable prices, reduction of interest rates, reduction of risks for households, companies and the State as well as more competitive products and services have been recognised as the major advantages of introducing euro in the Republic of Croatia. On the other hand, losing sovereignty in monetary policy has been seen as the major disadvantage, since, due to striking asymmetric shocks within the Monetary Union or in world crises, it could lead to increased prices and to reduced wages, as well as to slowing down of the economy or the recession after an abrupt decrease in previously high capital inflow.