Abstract
<para xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink"> This letter presents a novel banknote image processing system that includes banknote recognition, general attrition evaluation, and feature identification, in which the phenomenon of banknote deterioration is discussed in detail for the first time. To compare the sensed image with its reference, a banknote image registration algorithm based on the free-form deformations model (FFD) is proposed, in which a homogeneity-based banknote deterioration energy (BDE) is used as the cost function. The proposed algorithms lead to a high capacity for low-quality banknote processing and greatly decrease the false reject rate. </para>
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