> Mostly the European microstates and several Caribbean and Pacific islands, but if you don't count a gendarmerie as armed forces, you could include Costa Rica

> Mostly the European microstates and several Caribbean and Pacific islands, but if you don't count a gendarmerie as armed forces, you could include Costa Rica and Panama--two not-tiny countries--in the list. (If you do count them, the largest is the Solomon Islands). None of these places have a currency that is widely used. They may be offshore banking havens, but people keep their money there in US dollars. The only possible exception might be the Swiss Franc and they do have a military as well as the leverage of holding everyone's money. Many of those small countries don't even have their own currencies. Andorra uses the Euro, Kiribati uses the Australian dollar, Panama uses the US dollar in addition to its own currency and so on. The countries are able to exist without a military because they're under the protection of a country like the US with one.