The European Union has given Croatia the green Light to begin using the euro and join theSchengen zone from next year.
The country will join 19 other EU member states that use the currency.
It will adopt the currency from 1 January 2023, making Croatia the latest nation to join the eurozone since Lithuania in 2015.
From next year, it will mean that just seven EU countries still use their own currency.
By adopting the euro, the eastern European nation hopes to gain more financial security and improve the living standards of its citizens.
Croatia will also benefit economically from closer financial links with the single currency areas other members and the European Central Bank.
As Croatia becomes the 20th EU nation to adopt the euro, there are still a number of members that havent taken this step.
In total, seven EU countries dont use the euro: Bulgaria, Czech Republic, Denmark, Hungary,Poland, Romania, and Sweden.