The official currency of Bermuda is the Bermuda Dollar (BMD). It is pegged to the US Dollar at a rate of 1 BMD to 1 USD. Both currencies are accepted on the island, but you may receive change in either BMD or USD, depending on the vendor. Some merchants may also accept credit cards. It is a good idea to have some cash on hand, especially if you plan to use public transportation or if you want to purchase items from small, locally-owned businesses.