A coin is used to create capital (7)
I believe the answer is:
nicosia
'capital' is the definition.
(capital of Cyprus)
'a coin is used' is the wordplay.
'used' is an anagram indicator.
'a'+'coin'+'is'='acoinis'
'acoinis' with letters rearranged gives 'NICOSIA'.
'to create' acts as a link.
(Other definitions for nicosia that I've seen before include "It's capital in Cyprus (7)" , "Casino I used in Cyprus" , "Casino I find in Cyprus - that's capital" , "Divided Cypriot capital" , "Casino I visit in Cyprus" .)