San Marino is a very small country situated within Italy. It was one of the founding members of the Eurozone, issuing coins from 2002.
Some basic facts about San Marino:
Prior to the Euro the official currency was the Italian Lira. The conversion rate to the Euro was set at 1,936.27 to 1 Euro on 1st January 1999.
For more information on San Marino, try this link.