Around 150+ currencies exist in the world. Each currency differs from the other on the basis of size, paper, colors, patterns, text, etc. It is difficult to identify all the currencies that exist. Also, it is difficult to determine whether a currency is real or fake. Our system proposes to tackle this problem using Image Processing in MATLAB. The different types of currencies from different origin are provided to the system and system then performs Image Processing operations depending on the currencies and provide the identified currency type as an output. Also to authenticate currency is real or fake it performs Image Processing functions and identifies the currency provided as an input is real or fake.