Capital Iceland is the official name of the country of Iceland. The capital city of Iceland is Reykjavik, which has nine letters. The currency of Iceland is the Icelandic krona, which has five letters. Iceland is known for its many fjords, which are long, narrow inlets of the sea between high cliffs, also with five letters. Finally, the figure skater Sonja Henie, who won three Olympic gold medals, was born in Norway but had Icelandic ancestry, with five letters.