Iceland's language policies are purist and protectionist, aiming to maintain the grammatical system and basic vocabulary of Icelandic as it has been for a thousand years and to keep the language free of foreign (English) borrowings. In order to use Icelandic in the domain of information technology, there has been a major investment in language technology. However, this is expensive and time-consuming, and some feel that, with a population conversant in English, the effort to constantly adapt and translate new technologies from English is not worthwhile. This paper aims to examine Iceland's policies for IT and to investigate whether they can be maintained in practice. (Contains 1 figure and 3 notes.)