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Chapter 1

THE PROBLEM AND ITS BACKGROUND

Background of the study

People come in and out of the country either to work or just for vacation.

According to the statistics made by the Department of Tourism (Philippines), one million

to five million of foreign tourist visits Philippines yearly since the year 1996 up to the

present. While according to OFW Guru 2014 Overseas Filipino workers Statistics, there

are 2.3 million Filipinos working abroad. These statistics shows that different currencies

are now circulating inside the country; this is the reason behind the increasing number of

money exchange outlets being built.

The great contribution of the foreign exchange in the market and the rapid

increase in the number of exchange outlets in the Philippines inspired the researchers to

conduct this study. In order to provide a more convenient and efficient transaction, the

researchers automated the existing method of currency exchange which is through a

currency exchange service outlet that requires man power.

The machine that was developed in this study is physically almost similar to an

Automated Teller Machine except that the machine will accept bills in multiple

currencies. Bills that are inserted will be scanned through image processing to check its

authenticity and value that will be used as a base data to convert the selected currency to

Philippine Peso, in bills and in coins. Through this automation that the researchers

developed, less man power is required for the operation of this machine.

Statement of the Problem

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Currency exchange fast exists as it significantly contributes to the Philippine

market. To improve the current currency exchange transactions, the researchers proposed

a study that aims to answer the following questions:

1. How to design an Automated Currency Exchange Machine with Authenticity

Checker which performs an operation that automatically converts a currency to

Philippine Peso?

2. How to design a machine that can detect whether the money inserted is fake or

not through the use of UV light, a camera and image processing?

3. How will the machine update its exchange rate data so that the conversion of

values from one currency to another is based on a world currency exchange rate

and accurate?
4. What are the factors to be considered on the physical design of the machine so

that it will be easy to operate by the users?

5. What are the salient features of the proposed design compared to the existing

method of currency exchange?

6. How the machine will be tested and evaluated according to the following criteria:

a. Functionality
b. Efficiency
c. Accuracy
d. Reliability and
e. Usability

Significance of the Study

The study aims to benefit the following:

To the Overseas Filipino Workers and their Families. It will be more

convenient for them to exchange the money that is being sent. The transaction will be

faster compared to current money an exchange outlet that uses man power.
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To the Foreign Visitors. It will be easier for them to exchange their money to

their desired currency. This machine can be placed anywhere making it easier to find and

more convenient for the foreigners because the machine can operate 24 hours.

To the Future Researchers. This research will benefit the future researcher as a

new possibility of making existing methods automated has been opened for further

development. The currency exchange system started with tellers as operators and this

research used automated system which can be developed by the future researchers.

Scope and Delimitation

This study focuses on how to design and create an Automated Currency Exchange

Machine with Bill Authenticity Checker that exchanges five (5) currencies; US Dollar,

Japanese Yen. Saudi Riyal, New Taiwan Dollar and Korean Won to Philippine Peso

however, Philippine Peso bills are used as dummy bills for the four currencies aside from

US Dollar but the value will remain as it is, originally. Only bills are accepted and not

coins and the cash being dispensed are bills and coins. The set limit for the maximum

amount of money the machine can dispense for a single transaction is Php 1000.

The machine can identify fake bills inserted and will be rejected, but bills that the

value have been altered through bleaching process might not be identified as fake by the

machine because it is still printed on magnetic paper that will be identifies by the bill

acceptor. Supposing that the machine accepted a fake bill at a random reason, the image

processing together with the UV light will identify the authenticity but the machine

cannot return the money back. Also, crumpled, torn or bills with vandals are not accepted

because of the sensitivity of the bill acceptors and the OpenCV image processing.
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As for the currency exchange rate data, the machine is manually updated by the

administrator through a secured access to the machine. This data is available for viewing

before any transaction is made.

The machine goes offline if one of the dispenser ran out of money inside and it

also sends notification to the owner that the cash bins inside the machine needs to be

refilled. The machine will also display the current amount of money inside the machine

that can be dispensed for the future transactions but in case the user still tried to make a

transaction that needs more cash than the available stock, the machine will still carry on

with the transaction, dispense the remaining amount left inside and issue a receipt stating

that the dispensed amount is not enough and the user can claim it on a designated outlets.

A user friendly graphical interface is provided by a touch screen monitor and for

every transaction, a printed receipt will be dispensed by the machine. The chassis of the

machine is made of inch plyboard with a door at the back and at the upper front.

However, the machine does not come with an anti-theft system for better security.

Chapter 2

REVIEW OF RELATED LITERATURE

This chapter presents the related literature and studies both foreign and local

sources. This also includes the synthesis of the art, gap bridged study and the theoretical

framework terms are defined conceptually for clarity.

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Related Theories

Theories of Exchange Rate. According to Allan H. Meltzer (2002) there is

studies and observation about the relationship between the stock of money and the price

level on a certain country from the historic works and studies on economics. The people

conduct this studies leads to a theory between the stock of money and the price level, in

which the price level of a certain country is directly proportional to the stock of money.

When the price level rose there will also an increase in stock of money.

John Locke and other systematic observers recognized that in the middle of 18th

century, the changes in money affect the output of real goods and services but they also

found that this effect vanishes once prices adjust fully to the change in money.

Based on the relationship studies between the price level and the stock money

assumed an early formulation of this insight was expressed in the quantity theory of

money, which hinges on the distinction between the nominal, real values and quantity of

money. The nominal quantity is expressed in whatever units are used to designate money

relents, shekel, pounds, pesos, euros, dollars, yen, and other currencies of different

countries. The real quantity and by comparison is expressed in term of the volume of

goods services that the money will purchase. According to the quantity theory of money

the ultimately matters

To holders of money are the real values rather than the nominal quantity of

money. And it is not matters what are the factors may determine the nominal quantity of

money but it is the holders of money who determine the real quantity, the process and

also determine the price level. (Meltzer, A., 2002, Friedman, M., 1993)
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Theory of the Currency Denomination of International Trade. According to

Philippe Bacchetta of Study Center Gerzensee University of Lausanne CEPR and Eric

van Wincoop University of Virginia NBER (July 2002) The corner stone of new

Keynesian macroeconomics is the infrequent adjustment of prices due to small menu

costs. At the international level, however, there is an entirely different dimension to this

issue. If exporting firms set prices in foreign markets, and infrequently adjust them, in

what currency should they set these prices? This question is not grounded in mere

theoretical curiosity. It turns out that the invoicing choice, which is a microeconomic one

at the level of the firm, has far ranging macroeconomic implications. This has been one of

the main messages from the recent new open economy macroeconomics literature,

which has introduced nominal rigidities in an open economy context. The invoicing

choice affects both exchange rate volatility and the impact of the exchange rate on the

economy. It has been found to play a critical role for optimal monetary policy and the

choice of exchange rate regime.1 a key channel through which the invoicing choice

affects the macro-economy is its impact on the pass-through of exchange rate changes to

import prices. If firms set prices in the importers currency, we should expect zero pass-

through. If instead prices are set in the exporters currency, we should see full pass-

through. Figure 1 confirms this relationship between invoicing choice and pass-through

for a set of seven industrialized countries.2 The main objective of this paper is to derive

and understand the optimal invoicing decisions in the context of new open economy

macroeconomics models. While most of the literature has assumed exogenously that
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firms set prices either in their own currency or in that of the importer, firms are not

neutral between.

Related Literature

The following are the related literature that will be used in the development of the

Automated Currency Exchange Machine with Bill Authenticity Checker.

Automated Teller Machine. An automated teller machine or automatic teller

machine (ATM) is a device that provides the clients of financial institutions with access

to money transactions in a public space without the need of bank customers. The modern

ATMs, the customer is identified by inserting a ATM card with a chip that contains a

unique card number and some data such as an expiration date, CVV(Card Value

Verification) code and customer name. Customer identification and authentication is

provided by the customer providing a personal identification number (PIN). Using an

ATM system, customers can access their bank accounts in order to make money

withdrawals, debit card fund advances, and check their bank account balance.

Fraud against ATM system and people's try to use them takes several methods.

Once customer's bank card is lost and the password is known, the hacker will draw all the

money in the short span of time, which brings huge money losses to customer. Unlike

bank system, ATMs does not require any person performing the transaction to present

picture identification such as sign and his physical presence. If the bank card is stolen by

the criminal and the PIN number is known, a criminal person can easily make an access

to the bank account. There has also been lot of incidents of criminal by the Man-in-the-

middle attacks, where criminals have attached card readers or fake keypads to the
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existing ATM machines. These fake keypads will be used to read customers' PINs and

transaction password in order to make unauthorized access to the bank customers.

(Nagarathna, N. et al., 2015)

Top Countries that Sent the Most OFW Remittances. The Philippines

economy is still very much dependent on the remittances of OFWs, said the The

Philippine Star columnist Bobit Avila, Also according to him, the recent surge of the

Philippines economy is due to OFWs. Below are the Top 5 countries that sources of OFW

remittances according to Bangko Sentral ng Pilipinas (BSP):

1. United States

2. Saudi Arabia

3. United Arab Emirates

4. United Kingdom

5. Singapore

Top Foreign Visitors in the Philippines Statistics 2016. According to the

Department of Tourism in the Philippines statistics, 300,000 500,000 of international

arrivals yearly in the Philippines have been recorded from year 2012 to 2016 and July

2016 registered the biggest volume of inbound visitors which is 560,872. The top 5

foreign visitor arrivals to the Philippines are:

1. Korea

2. China

3. USA

4. Japan

5. Taiwan
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While the top 7 foreign visitor arrivals to the Philippines by airport are:

1. Manila

2. Cebu

3. Kalibo

4. Clark

5. Davao

6. Laoag

7. Palawan

Counterfeit Money Identification. With the rise of digital printing,

it is getting easier and easier to produce counterfeit bills that will fool

the average cashier or business owner not to mention most

consumers. If you and your employees are not educated, your business

could lose hundreds or thousands in profit by accepting counterfeit

bills. It is important to realize that the highly popular counterfeit pens

(used to detect counterfeit bills) are no longer reliable indicators of

whether or not a bill is counterfeit.

One of the first things to look for when checking to see whether or not a bill is

authentic is to see if the bill denomination on the bottom right hand corner has the right

color shifting ink. All authentic US reserve notes have raised printing. Many times,

counterfeiters have a tough time duplicating this kind of printing method. Authentic bills

are extremely detailed, made using die-cut printing plates that are capable of impressively

fine lines. Printers are rarely capable of the same level of detail. Take a close look,
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especially at the borders, to see if there is any blurring. The next security feature to look

for is the characteristic watermark. In many of the new bills, the watermark is actually a

replica of the face on the bill. The security thread is one of the most distinctive security

indicators of an authentic bill. If you hold any bill up to the light, you will see a security

strip on an authentic bill.

Education is the main defense against counterfeit bills. But there are also a variety

of products and resources available to help you with the counterfeit detection process.

UV detection lights are especially helpful. They can quickly verify the authenticity of a

bill by checking the security thread and seeing if it glows the right color. (Rueger, J.,

2015)

Image Deblurring. As Mark Twain said You cannot depend on your eye when

your imagination is out of focus. When we use a camera, we want the recorded image to

be a faithful representation of the scene that we seebut every image is more or less

blurry. Thus, image deblurring is fundamental in making pictures sharp and useful.

A digital image is composed of picture elements called pixels. Each pixel is

assigned intensity, meant to characterize the color of a small rectangular segment of the

scene. A small image typically has around 2562 = 65536 pixels while a high-resolution

image often has 5 to 10 million pixels. Some blurring always arises in the recording of a

digital image; because it is unavoidable that scene information spills over to

neighboring pixels. In these and similar situations, the inevitable result is that we record a

blurred image. In image deblurring, we seek to recover the original, sharp image by using

a mathematical model of the blurring process. The key issue is that some information on
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the lost details is indeed present in the blurred imagebut this information is hidden

and can only be recovered if we know the details of the blurring process.

The blurring, or degradation, of an image can be caused by many factors:

Movement during the image capture process, by the camera or, when long exposure times

are used, by the subject, Out-of-focus optics, use of a wide-angle lens, atmospheric

turbulence, or a short exposure time, which reduces the number of photons captured or

Scattered light distortion in confocal microscopy. (Twain, M., 2006)

Image De-noising. Image De-noising is the process of removing the noise from

the image in such a way that the "original" image is discernible. Level set Method is one

approach for Noise Removal.

Level set method offer an appealing approach to noise removal. In particular, they

exploit the fact that curves moving under their curvature smooth out and disappear. The

idea is to view the pixel values as a topographic map; the intensity (somewhere between

white and black) at each pixel is the height of the surface at that point. Suppose we then

let each contour undergo motion by curvature. Then very small contours, corresponding

to spikes of noise, will disappear quickly. Better yet, the boundaries will remain sharp,

since they will not blur under this motion, and instead only move according to their

curvature.

The method evolves contours, boundaries remain essentially sharp and do not blur.

Second, a "min/max" switch is used to control whether or not curvature flow is applied;

this results in an algorithm that stops automatically once the smallest features are

removed. The algorithm treats an image as an array of pixel values, and, tracks the
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evolution of iso-intensity contours using a level set method. The key idea lies in a

"min/max" speed function of the form F = min (K, 0) or F=max (K, 0), where K is the

curvature and F is the speed in the normal direction. The choice of the min or max is

controlled by a switch which depends the local average pixel value at any point. This

result in an extremely robust and straightforward algorithm which relies only on a local

nearest neighbor stencil, has a hierarchical scale of noise removal, and, most importantly,

stops automatically. Continued application of the scheme once the noise is removed

causes no further degradation in the larger features. (Malladi, R. et al, 1995)

Image Segmentation. According to the book of From Segmentation to

Binarization of Gray-Level Images Journal of Pattern Recognition Research, Digital

Images can be divided in to multiple segments (known as Super-pixels) using a method

of partitioning called as Image Segmentation. Image Segmentation is used to modify each

pixel in images and label them in a way that the pixel that shares the same label shares

some of their properties and characteristics. Image segmentation changes the

representation of the images and simplifies the image processed into an easy way that

anyone can analyze and understood. Pixels that has same labels are joined together to

form a new set called set of segments. The set of segments that covers the entire image is

represented as a result of the Image segmentation. This theory simply states that Each of

the pixels in a region is similar with respect to some characteristics such as color,

intensity or texture. Adjacent regions are significantly different with respect to the same

characteristics. (Frucci, M. et al., 2008)

Bill Acceptor (Pyramid Technologies Inc.'s APEX 5400). Bill Acceptor is

defined as the paper currency detector that scans paper currency using optical and
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magnetic sensor. The Pyramid Technology Inc.(PTI) developed a certain device that

accepts a bill that can be used for different purposes. The Pyramid Technology Inc. APEX

Series Bill Acceptors are designed in such a way that the people can use the bill for

indoor use for amusement, gaming, lottery, Kiosk Market and even Vending Machines.

The Pyramid Technology Inc. APEX Series Bill Acceptors can be reconfigured using a

configuration card that is given by the company itself, the configuration card is feeded

through the insertion slot of the device and accepts the data that it scanned and

automatically reconfigures it's function.

Bill Dispenser . Bill dispensers are used to dispense bills and supply cash that is

controlled by a computer device. Bill Dispensers are widely used by different Automated

Teller Machines of different banks. The purpose of this device is to dispense a certain

amount of bills that the users controlled and sends pulse to the machine to release the

amount of bills desired. The most popular Bill Dispenser producer was Fujitsu.

Coin Dispenser (Coin Hopper). Coin Dispenser is a small container, used to

dispense a fixed number of coins on demand or as change. The coin dispenser dispenses

coins by receiving a signal from Arduino which triggers its function to dispense a certain

amount desired through the use of the sensor circuit that can be seen outside the Coin

Hopper.

Arduino Shield Design for Electronics Laboratory Studies. The aim of the

thesis was to create a collection of shields to be used with the Arduino microcontroller

platform that replaces or supplements the features of the existing platform used by the

electronics laboratory. The thesis covers the design and construction processes and

explains the general properties of the shields. The work started with the designing of the
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shields using an open source software suite KiCad which contains all the tools required to

design PCB schematics and board layouts.

The project aim is to create a collection of shields which match or supplement the

features of the existing microcontroller board. By using the widely available Arduino

board, any student can buy their own Arduino and loan the shields from the Rovaniemi

University of Applied Sciences (RAMK) for home use. In the electronics laboratory the

students use boards supplied by RAMK. Additionally, if ever a project may require more

than the 20 input/output pins that are provided by the standard Arduino board, the Mega

version can be used instead providing a total of 70 input/output pins. (Ruokamo, J., 2012)

Ultraviolet Light for Counterfeit Money Detection. Ultraviolet Lights are used

by many banks for the counterfeit money detection. One of the main property of the bills

are the UV Marks, it is the images printed on the bill using a non-visible dye and

becomes visible when Ultraviolet Light is shined through it. Ultraviolet lights are used in

UV banknote checker which verifies UV marks in the bill that is not visible through the

naked eye, which is one of the security features set by any bill's manufacturer. ("How

does a Counterfeit Money Detectors work?", article retrieved from

zzaponline.com/articles/how-do-counterfeit-detectors-work)

Visual Basic 6.0. Visual Basic (VB) is a powerful Object Oriented Programming

Language. As our time modernized, programming language stepped-up from simply

coding using text or words and developed a programming language used in sophisticated

applications for PC's that can actually make the programmers interact with using a

Object-Oriented Programming called Visual Basic. BASIC can be used by different

people, even the non-programmers. Visual Basic can help the non-programmers to
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understand what capabilities a programming language has and how all of the VB's

features solve a certain real problems. Visual Basic can be easily used by people because

of it's Interacting capability such as dragging up buttons, creating Textfields, making new

form, connecting forms to different softwares and databases which is a feature of an

Object-oriented programming language.(Haggard, G. et al., 2013)

Visual Studio. According to Hans -Petter Halvorsen, Visual Studio is defined as

an Integrated Development Environment (IDE) from Microsoft that can be used to

develop console and graphical user interface applications along with Windows Forms

applications, websites, web applications, and web services in both native code together

with managed code for all platforms. The Visual studio shares a single integrated

Development Environment with different Elements. It is supported by Microsoft

Windows, .NET Frame work and many more. (Halvorsen, H.P., 2016)

Python. Python is commonly used high level programming language. Python was

created and released by Guido van Rossum in 1991. Python property is that it's syntax

allow the programmers to express their codes in fewer lines through programming

languages such as C, C++ or Java. Python supports object oriented, imperative and

functional programming. Python can also be used through different programming

softwares such as Open CV, Visual Basic and many more. (Rossum, G.V., 1993)

Open CV. Open CV (Open Source Computer Vision) is a library of programming

functions mainly aimed at real-time computer vision. Originally developed by Intel's

research center in Nizhny Novgorod(Russia), it was later supported by Willow Garage

and is now maintained by Itseez. The library is cross- platform and free for use under the

open source BSD license. Open CV is a great library for creating Computer Vision
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software using state of the art techniques, and is freely available for Windows, Linux,

Mac and even Android & iPhone.

Open CV is released under a BSD license and hence its free for both academic

and commercial use. It has C++, C, Python and Java interfaces and supports Windows,

Linux, Mac OS, iOS and Android. Open CV was designed for computational efficiency

and with a strong focus on real-time applications. Written in optimized C/C++, the library

can take advantage of multi-core processing. Enabled with Open CL, it can take

advantage of the hardware acceleration of the underlying heterogeneous compute

platform. Adopted all around the world, OpenCV has more than 47 thousand people of

user community and estimated number of downloads exceeding 9 million. Usage ranges

from interactive art, to mines inspection, stitching maps on the web or through advanced

robotics. (OReilly Publishing, 2013)

Related Studies

The following are some local studies related to the Automated Currency

Exchange Machine with Bill Authenticity Checker.

Micro-controller Based Bill to Coin Changer with UV Light Dependent

Counterfeit Sensor. The bill to coin changer is defined as a microcontroller based

design that changes peso bills inserted by the user to peso coins of choice. The thesis

focuses on the concept of changing peso paper bills like 20 peso, 50 peso and 100 peso to

1 peso coin, 5 peso coin and 10 peso coin. One of the features of the study aims to check

first the authenticity of the bill inserted before proceeding to the main feature of this

study, which is determining and changing the peso bill inserted to design coin choices.
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The counterfeit sensor together with the Ultraviolet light ensures that the bill being

inserted to the Bill to coin Changer is valid and acceptable. The bill detector is used to

identify the money being inserted. The coin sensor also used for dispersing counter. The

LCD and Relay driver circuit that controls the Input/output processes. More likely, the

Bill to Coin Changer uses idea from the concept of vending machines and change

machines. One of the most innovative ideas that can be used for the future.

(Bolo, J. et al., 2008).

Philippine currency paper bill counterfeit detection through image

processing using Canny Edge Technology. Image edge information is essentially one of

the most significant information in an image, which can describe the target outline, its

relative position within the target area, and other important information. Edge detection is

one of the most important processes in image processing, and the detection results

directly affect the image analysis. Traditional edge detection algorithms are accomplished

through detecting the maximum value of the first derivative or zero crossing of the

second derivative. Though it seems the representative first order differential operators

have known advantages like simple computation, speed and ease of implementation, they

are more sensitive to noise and their detection effect are not perfect in most engineering

application. Schemes for counterfeit detection have been continuously evolving through

various techniques and algorithms run on machines and devices. This paper presents

image enhancement and image sensing through the use of Canny Edge Technology.

Moreover, counterfeit detection on selected Philippine banknotes was achieved by

incorporating a distinct security feature known as Optically Variable Device (OVD)

patch, as an improvement to the traditional three-way detection of bills (watermark,

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security thread, see-through marks)A MATLAB GUI program was developed that

acquired and processed the image through Canny Edge Technology. The Canny Edge

algorithm proved a robust method in detecting fake bills through OVD security features,

revealing statistically significant detection proportion under a 5% level of significant for

the four cases under test. (Ballado, A. H. et al., 2015)

The Impact of Exchange Rates. An article published by The Manila Times in

August 2014, says that "Exports and OFW remittances are the two biggest sources of

foreign exchange inflows to the Philippines, while imports and debt servicing are the

biggest sources of outflows. The littlest change in the peso-dollar exchange rates can

have a great impact on costs as most of the import and export transactions are

denominated in US dollars.

Far-reaching effects: It is stated in the article that the weaker the currency relative

to the US dollar actually may have more economic benefits than a stronger one, which

means that when peso is weaker in value, it benefits the Philippines' export transaction

because it makes exports less expensive that leads to expanded production, employment

and contributes, directly to GDP. But the downside is that imports would be expensive,

and will bring a reverse effect to strong export transactions and GDP growth will suffer.

To some degree, consumption does balance a strengthening currency in the Philippines

roughly 25 percent of the countrys imports are electronic products, and a significant

portion of those are either finished goods such as cellular phones, other mobile devices,

and computer components destined for the consumer market, or components for products

to be assembled and sold here.

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Business Strategies: The Manila Times interviewed two firms whose activities are

comprehensively impacted by movements in the peso-dollar exchange rate: One, a

chemical firm with core businesses in food ingredients, aerosols, and specialty plastics;

and the second, a small currency exchange business. Since many Philippines

manufacturers relies heavily on import raw materials, exchange-rate stability is a more

important factor than its value. Since we do pass on changes in our raw material costs to

customers, including changes in forex, our revenues move in tandem. Focusing on

keeping margins steady, as a consequence, has helped the company expand its volume

and profits. We pay more attention to margins and volume growth than revenues to

measure performance, Lao said. Even with the ups and downs in the USD-PHP

exchange rate in the past four years, our margins, and in turn profits, have been stable and

in recent times have been increasing. Movements in commodity prices and forex, which

are beyond our control, said by Alfred Lao, D&L industries' chief financial officer. To

keep up with the changes in the USD-PHP exchange rates, manufacturing companies like

D & L adjust their costs, doing a minimal finance hedging or sometimes physical

hedging, this is called risk reduction strategies. The currency exchange business is a lot

like trading forex, in that our gains are very small, and only mean something because we

are moving large amounts of money, he said. (Kritz, B., 2014).

Vehicle and Weather Detection Using Real Time Image Processing through

Optical Flow and Color. According to this study "One of the major problems in an

urban environment is monitoring and controlling city traffic. They proposed a solution to

minimize and monitor traffic congestion caused by heavy volume of vehicles, bad

weather, violating motorist and drivers.

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Image processing is the method used in this system which act as a surveillance

camera mounted on optimal position to detect vehicles efficiently. A foreground detector

and blol analysis were the techniques that used to identify the vehicle in a video sequence

The Gaussian mixture model had to have an initialized foreground detector that sampled

a video frame before it could be used. After initializing the foreground detector, blob

analysis was used to detect vehicles and place a bounding box. Image processing used in

detecting vehicles was used in determining the weather condition. And it was capable of

detecting the density of vehicles on the lane even in various conditions like rain or

changes in illumination. (Magdaraog, J.J., 2014).

The following are some foreign studies that are related to the Automated Currency

Exchange Machine with Bill Authenticity Checker.

Automatic Cash Deposit Machine with Currency Detection Using

Fluorescent and UV Light. According to Dhiraj Vasant Kapare , Sadashiv Lokhande and

Sayaji KaleCash Deposit Machines (CDM) has altered the relationship between banks

and their depositors, as well as the competitive relationships among banks. In this paper,

Researchers survey the literature to describe the ways have influenced these aspects of

banking markets. The project is designed to provide fully automatic cash deposit

machine. It is combination of Embedded, DIP & Automation. In Mat lab every data

image of note is compared with ideal stored image of every appropriate type of note.

Every note is passed through UV light to detect the originality of note which

consequently results in acceptance and rejection of faulty notes.

The study states that automated cash deposit machines can offer significant

benefits to both banks and their depositors. The machines can enable depositors to
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deposit cash at more convenient times and places than during banking hours at branches.

At the same time, by automating services that were previously completed manually,

CDMs can reduce the costs of servicing some depositor demands. These potential

benefits are multiplied when banks share their CDMs, allowing depositors of other banks

to access their accounts through a banks CDM. In this paper, I will review the literature

on CDM pricing and focused both on the motives for sharing CDM facilities.

The project is designed to provide fully automatic cash deposit machine. The

hardware consists of LCD screen for displaying option to select the bank and enter Acc.

No in which cash is to be deposited and also guides the customer to next steps .The

carriage is provided to carry the currency notes one by one from customer where camera

captures image of every note and send the data image to PC with Mat lab. Every data

image of note is compared with ideal stored image of every appropriate type of note.

Every note is passed through UV light to detect the originality of note which

consequently results in acceptance and rejection of faulty notes. (Kapare, D.V., 2013)

Currency Recognition System Using Image Processing. Currency recognition

system is a system that uses image processing as a way of determining what currency is

scanned in the system. This study aims to solve the problem of people in recognizing and

determining the currencies from different countries. Using image processing, the

analyzation of the color and shape of the money used gives the accurateness of the study.

The study also aims for the process to be automatic and robust. The currency recognition

system is based on how the "Currency Sorting Machine" functions on how to determine

money using the technique called "Optical, Mechanical and electronic integration". The

system's steps that the researchers used are processed using MATLAB software. The
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processes of this system are the following: 1.Reading the image 2.Pre-processing

3.Removing noise, Smoothening image and Image process 4. Edge detection,

segmentation and pattern matching 5.Result printing. The currency recognition system is

similar to face recognition system and fingerprint recognition system but the techniques

that are used to each one is different. As scanning throughout the whole study, the factor

that determines money such as color, shape, size, blurredness of print are needed to be

considered in the study. (Wang, Y. et al., 2010)

Fake Currency Detecting using bar code system. Fake currency is imitation

currency produced without the legal sanction of the state or government. Producing or

using Fake currency is a form of fraud or forgery. This has led to the increase of

corruption in our country hindering countrys growth. Common man became a scapegoat

for the fake currency circulation, let us suppose that a common man went to a bank to

deposit money in bank but only to see that some of the notes are fake, in this case he has

to take the blame. Some of the effects that fake money has on society include a reduction

in the value of real money; and inflation due to more money getting circulated in the

society or economy which in turn dampens our economy and growth - an unauthorized

artificial increase in the money supply, a decrease in the acceptability of paper money and

losses. The fake currency detection system is developed to detect the fake currency by

applying different techniques and methods on currency note. The fake currency detection

system should be able to recognize the note quickly and correctly. The fake currency

detection system should be able to recognize currency note from any side. Currency

recognition system can be used in places such as shops, banks counter and automated

teller machine, auto seller machines etc. The data in a bar code is just a reference number
 23

which the computer uses to look up associated computer disk record(s) which contain

descriptive data and other pertinent information.

A barcode reader (or barcode scanner) is an electronic device for reading printed

barcodes. Like a flatbed scanner, it consists of a light source, a lens and a light sensor

translating optical impulses into electrical ones. Additionally, nearly all barcode readers

contain decoder circuitry analyzing the barcode's image data provided by the sensor and

sending the barcode's content to the scanner's output port.

In this paper researchers are presenting a new proposed system for the detection

of fake currency. Here we are generating a new note with barcode which contains a

unique serial numbers, and it is easily detectable of fake notes by using bar code reader.

The main motivation behind development of this paper is to make a system for

easy and quick detection of genuine and fake currency notes. One should be cautious

while detecting a fake note. Our paper enables a layman to identify a fake note and

empower every citizen to detect fake notes which may reduce corruption in our country

by implementing new technique in currency notes. (Manohar, K. et al., 2014).

Note to coin Exchanger Using Image Processing. According to the studies

"People is suffering a lot for the change in various public places in daily life. The need of

change has increased. Rather coins are used more instead of note in various places like

bus station, railway station, malls, parks, even in rural areas and also coin telephone

system. They require more coins are often use for these application"(page 1). The

researchers thought to develop an exchanger machine which will change note to coins. As

there are lots of techniques to detect the Indian currency note, these are texture based,

pattern based, checking by the watermarking, checking the micro lettering, color based
 24

recognition technique, but the most preferable technique along all these is color based

recognition . It is constructed by counting the number of pixels of each color. For

detecting kind of note the mat lab algorithm runs and the result is given to the controller

which will manipulate the coin container through relays and motors, the user simply press

the keypad for which type of change user wants.

Image processing technique is a vast in this there are lots of technique to detect a

note these are texture based, pattern based, checking by the watermarking, checking the

micro lettering, color based recognition technique .The most preferable technique along

all these is color based recognition . It is constructed by counting the number of pixels of

each color. Histogram describes the global color distribution in an image. It is easy to

compute and is insensitive to small changes in viewing position. The computation of

color histogram just involves counting the number of pixels of specified color.(Bade, A.

et al., 2013)

Online Machine Learning Algorithms for Currency Exchange Prediction.

Using Machine Learning Algorithms to analyze and predict security price patterns is an

area of active interest. Most practical stock traders combine computational tools with

their intuitions and knowledge to make decisions. This technical report describes methods

for two problems: 1. How to find highly correlated pairs of securities over the last recent

time period (e.g. over the last hour) in a sliding window fashion. The base model used for

this is Stat stream. 2. How to predict foreign exchange rate changes in an online fashion,

updated over time. This document explains the algorithms and discusses various metrics

of accuracy. It validates the models by applying the model to a real-life trading price
 25

stream. Though it is very hard to replace the expertise of an experienced trader, software

like this may enhance the traders performance.

The first part of this technical report is mainly an extensive study on fast

algorithms for time series manipulation, dimensionality reduction techniques and

correlation discovery among vast amount of streams. All of these are investigated through

Stat stream. Chapter 2 describes Stat stream system and the extensions we enhanced. In

Chapter 3 we present the problem and our main motivation. In Chapter 4 we adduce the

fundamental knowledge one should have to familiarize with the concepts of machine

learning and investment options. This knowledge is important for the following sections.

Chapter 5 presents our algorithm and explains our framework, Learn stream, which as far

as we know is the first system capable of online machine learning in a streaming manor.

In Chapter 6 we adduce the experimental results based on three datasets (two foreign

exchange data sets and one electrical consumption measurements). We simulate a trading

environment and aver that our predictions on price movement can used to gain substantial

profit. Finally, in Chapter 7 we discuss the results of this project and present the

combination of Stat stream and Learn stream into a new system. Its name is Stat Learn

and is the first system capable of finding high correlated pairs and determining linear

relationships among them in real time. (Soulas, E. et al., 2013)

Vending Machine with Currency Change and Exchange. According to Manjeet

Kumar , Anirudh Saxena , Amresh Mishra , Chandan Singh Sisodia , Manorma Kaushik ,

Akhilesh Kumar and Singh Yadav, A vending machine is an automatic device that

dispenses consumer products to customers, after the customer inserts currency or credit

into the machine. It is very easy and reliable method of purchasing than the conventional
 26

one. This paper proposes to design a vending machine with currency change and

exchange. The machine provides change of currency to its user or if needed exchange the

currency to other currency options. This machine can be used at station, hotels, malls,

complexes etc. reducing time and cost. The model of vending machine is implemented

using FPGA the simulation results and circuit parameters are also presented.

This study states that Vending Machine can be used at stations for ticket selling, in

school, banks, office and at shopping centres. For modeling electronic system at various

levels of design to describe FPGA and IC's VHDL is used. The machine can accept the

coins of one rupees, two rupees and five rupees in any possible sequence. There are coin

slots and it commonly connected to the FPGA. User interface is used for coin dispense

and product dispense. Relay is used to control the product dispatch. The program has

written on KCPSM3 processor and downloads into the FPGA Spartan-3A kit by using

ELBERT configuration for selecting products, coin sum and balance and it will be

display on LCD. (Kumar, M. et al., 2014)

 27

Conceptual Framework

Figure 2.1 Conceptual Framework

Figure 2.1 presents the conceptual model of the study. The researchers followed

the input, process and output in creating the design project. The input of this study is the

knowledge requirement to be able to plan and understand the machine, the software

requirements as well as the hardware requirements. The researchers used the Waterfall

model which includes planning, system design and specification, coding, verification and

testing. For the output of this study, the researchers developed a machine that provides

automation to currency exchange that supports five (5) currencies.

 28

Definition of Terms

Accuracy- the degree to which the result of a measurement, calculation or specification

conforms to the correct value or a standard.

Authenticity- valid or real.

Bank note- is a negotiable promissory note issued by a bank and payable to the beamer

on demand.

Black light- simply called ultraviolet light; its a lamp that emits long ware ultraviolet

light and not much visible light. Used to determine fake moneys.

Bleaching- means bleaching currencys ink to imitate currency produced without legal

sanction of state or government.

Camera- a device that is used for taking photographs or for making movies, television

programs and other.

Chassis- outer casing or shell of the machine.

Coin Hopper- also called Coin dispenser, the device that dispense coins when a sensor is

triggered.

Currency- the money that a country uses or a specific kind of money.

Currency exchange- defined as a business that allows customers to exchange one

currency for another currency.

Exchange rate- a number that is used to calculate the difference in value between money

from one country and money from another country.

Image processing- the analysis and manipulation of a digitized image specially in order

to improve its quality. Process of images using mathematical operations.

 29

Machine- a piece of equipment with moving parts that does work when its given power

from electricity, gasoline and other.

Microcontroller- a microprocessor that controls some or all of the functions of an

electronic device or system.

Module- a self-contained assembly of electronic components and circuitry such as a

stage in a computer that is installed as a unit.

 30

Chapter 3

RESEARCH METHODOLOGY

This chapter presents the procedures and methodologies that are used to discover

the feasibility of the study. This contains the important elements and descriptive designs

needed to build the money changers hardware and the system flow of how the software

works. Through these procedures along with the analyzation of the design, the

researchers did an overview of the study and how it became feasible.

Project Design

Descriptive research designs help provide answers to the questions of who, what,

when, where, and how associated with a particular research problem; a descriptive study

cannot conclusively as certain answers to why. Descriptive research is used to obtain

information concerning the current status of the phenomena and to describe "what exists"

with respect to variables or conditions in a situation.

The project is designed to identify the currency, value and authenticity of the bill

being inserted to the machine and be able to exchange it to another currency with the

equivalent value. Arduino provides function to each components such as; Image

processing of the bills for identification which operates with a camera; converting and

calculating the rates; and mechanical components for accepting, sorting and dispensing

the money. The currency exchange rate data is updated manually through a secured

administration access to the machine and the data is fetched every 12 hours.
 31

Figure 3.1 The V- Model

In figure 3.1, the left side of the V-model represents the building stages needed for

the project or system. Requirements planning, analysis, designing and coding is in that

part of the model. While in the right side of the model represents the fixing integration

part of the system model, under of this part are the acceptance, debugging and the testing.

The arrow from the model represents the flow inside the system. The testing phase look

back in analysis, the designing and debugging look back in requirements and the analysis

& acceptance phase may base on the requirements if it is completed.

 32

Figure 3.2 Automated Currency Exchange Machine Flow Chart

 33

Figure 3.2 Automated Currency Exchange Machine Flow Chart (Continuation)

 34

Figure 3.2 Automated Currency Exchange Machine Flow Chart (Continuation)

 35

Figure 3.2 Automated Currency Exchange Machine Flow Chart (Continuation)

C C
 36

Figure 3.2 Automated Currency Exchange Machine Flow Chart (Continuation)

Figure 3.2 shows how the system works from accepting input until producing the

desired output of the user. The machine will ask for an input of what currency you have

on hand and the currency that the user desired to be exchanged. Bills that the user will

insert will be scanned and processed by the machine, checked the authenticity and sorted

according to the currency`s value. The converted value from starting currency to desired

currency will be showed to the monitor and dispensed by the machine through bills and

coins.
 37

Figure 3.3 Automated Currency Exchange Machine Block Diagram

Figure 3.3 shows the schematic form of the general arrangement of parts or

components of a complex system or process, such as an industrial apparatus or an

electronic circuit. Each block represents the features of the project and how each will

function. From inserting of money and detects whether it is fake or genuine and sends

signal to the program and converts into the desired currency of the customer. And then

sends into the Arduino that connects every module that the machine has. The hardware

components of this project and how they interact with each other are shown in the

diagram.
 38

Project Development

Below are the steps that the researchers have used for the software development,

hardware development and hardware software integration.

Software Development

In constructing the Automated Currency exchange machine, the steps for

Software Development, using V-model are the following: Planning, Analysis, Design,

Coding, Testing, Debugging, and Acceptance.

Planning. According to Alford and Beatt, Planning is the thinking process, the

organized foresight, the vision based on fact and experience that is required for intelligent

action. Planning envisions the whole process of how the machine will be built. It

explains the construction of the plan detail by detail by identifying the requirements that

is needed in the project. The first thing that the researchers decided to do is to understand

the problem and at the same time planning a certain language that will fit the researchers

skills in programming. Understanding the problem will be the key for the researchers to

gather data/requirement that is possible to be used through the study.

Analysis. The analysis stage is where the problems to be encountered while

developing the project is identified and analyzed. The researchers listed all the difficulties

for creating the project and these are: finding the right components that are compatible to

the machine and if these components are available locally, the researchers are not very

much familiar with the software and programming languages to be used, making the

machine realistic in size and making sure that the machine will provide accurate

computation and output.

Software Requirement. Software is commonly used by programmers for

developing programs and for modifying the integrated codes in the system. The
 39

researchers came up with the idea of using software such as, Open CV, Arduino and VB

6.0. The stated softwares are ideally used by the Researchers to determine and do the

functions of the machine that will be built especially for the Money Changing and Fake

money detection function. The Software requires an easy approach to the programmers

by understanding the whole construction of codes and provides a user friendly Interface.

Designing. The Researchers studies the process how the machine will operate

and work as a whole system. Designing the detailed concept of the system data flow for

obtaining the system specification requirement. Also constructing the physical features

and appearance of the machine for the user friendly of the systems. The researchers will

apply a certain type of modeling, which is the V- Model. There are two stages of the V-

Model; the requirement stage is located at the left side of model that states the full

process in constructing the software. The testing stage locates in the right side which can

come back to a certain process to modify each error stated within the system.

Coding. The coding stage is where all the programs of the system that will make

the components run are made. For the image processing, the software Open CV is used

using C++ programming language together with the Arduino and Visual Basic. The

currency exchange rate data is updated manually through a secured administration access

to the machine and the data is fetched every 12 hours. Arduino will be programmed in the

language C++, as well as the sorting and dispensing mechanism of the machine that will

be programmed in other Arduino.

Testing. The researchers tested the machines functionality by running a series of

test and comparing every result that is given by the machine. Through this testing, the

researchers will be given an idea on what to debug or fix in the machine. This stage is
 40

known as the trial stage wherein the researchers will conduct the following methods for

their proposed project:

By changing the five (5) different currencies namely US Dollar, New Taiwan

Dollar, Japanese Yen, Korean Won and Saudi Riyal that is needed for the

mechanism of the proposed project.

By inserting a fake money to know if the UV light in the machine will detect

if the money is fake or not.

By knowing if the machine will dispensed the correct currency based of the

users choice.
By inserting the five different currencies one by one to know if the machines

real time camera will detect the type and amount of the bill.

Debugging. In this process, the researchers focus on debugging the system or

programs. Debugging is a process which the researchers locates and fixes errors that is

found in the system or program. It is usually done for engineering of hardware devices.

For the Currency Exchange Machine System that the researchers build, debugging the

systems can be used such Image Processing, the screen layout system and the codes for

mechanism inside the machine are needed to focus on. The researchers do the debugging

process in the following systems: (1) Debugging the system codes for the functionality

(2) Debugging the codes used for hardware mechanism.

Debugging System Codes for Functionality. For this process, the researchers focus

on the codes that run the functions of the machine. Finding errors through debugging the

Image processing function, screen layout functions and the GSM Module Updater

function.
Debugging Codes used for Hardware Mechanism. This part will focus on the

codes that run the machines mechanism. The way the sorting and dispensing money is
 41

important for the machine. Thats why debugging the codes for the machines mechanism

is one of the factors that the researchers considered.

Acceptance. After completing the machines software, the researchers have

proven that the program already does all the function that it is supposed to do such as

determining the type of currency through image processing, determining the amount of

the bills being inserted, performing the designated equations for converting the amount to

another currency and sending pulse for the dispensing of the bills and coins.

Hardware Development

In this stage, the researchers conducted a research about the tools that are used

based on the software requirement. Studying the capabilities and constructing the circuit

diagram of each component used and designing schematic diagram in the Integration of

the software and hardware of the machine.

Below are some components to be used in building the machine:

 42

Figure 3.4 Arduino Uno

In figure 3.4 shows the Arduino Uno, which is the board that triggers every control of the

machine.

Figure 3.5 Bill Dispenser

In figure 3.5 shows the Bill Dispenser that enables the machine to dispense all the

bills that are stored inside the machine.

 43

Figure 3.6 LogiTech Web

Camera

In figure 3.6, the Logitech Camera is shown, which captures and monitors the bills for the

Open CV application.

Figure 3.7 Coin Dispenser

In figure 3.7 is the Coin Dispenser, that enables the machine to dispense all the

coins that are stored inside the machine.

 44

Figure 3.8 Bill Acceptor

In figure 3.8 is the Bill Acceptor, which is the component responsible for accepting the

bills to the machine.

Figure 3.9 UV Lights

In Figure 3.9 are the UV lights that was used in this study as one of the

component used to avoid money counterfeiting

Prototyping. Prototyping is one approach that the researchers based on for the

tangible part of the study. Prototyping can be used for building or making hardware part

of the currency exchange machine. In this process, the researchers build a certain
 45

prototype of a machine in which the software programming can be integrated. By

building the prototype of the currency exchange machine, the researchers can determine

whether the programmable code can be executed through the hardware part of the

machine. The prototyping of the currency exchange machine includes such materials like

ply board for the outer and the frame work of the machine; camera for image processings

hardware and motors for the mechanisms inside.

Hardware and Software Integration

After finishing the chassis of the machine and gathering all the components, the

researchers uploaded the program to the Arduino Uno. The components such as the bill

acceptors, coin and bill dispensers were connected to the 5V, 12V and 220V power source

with relay circuits to control the input and output pulse. All components were then

connected to the designated pins on the Arduino Uno. As for the interface, a program was

made with Visual Basic 6.0 and was integrated to the Arduino program synchronize the

functions with the interface.

Figure 3.10 Finished Outcome and Arduino Program of the Automated Currency

Exchange Machine with Bill Authenticity Checker

 46

In Figure 3.10 shows a screenshot of the arduino program used and the final

outcome of the machine.

Evaluation Procedure

The Automated Currency Exchange Machine is evaluated by respondents that

include computer engineering students and professionals in the field of computer

engineering and foreign exchange market. The evaluation instrument for this research

which is the questionnaire is given to the respondents to evaluate the Functionality,

Efficiency and Effectiveness, Accuracy, Reliability and Usability of the machine. The

prototype of the Automated Currency Exchange Machine is shown to the respondents for

inspection and testing before evaluating with a five item scale: Strongly Agree, Agree,

Undecided, Disagree and Strongly Disagree with Strongly Agree as the highest and

Strongly Disagree as the lowest. A section for comments and suggestion is also included

in the questionnaire for the respondents to fill up that may help future enhancements.

Evaluation Criteria
The Automated Currency Exchange Machine is evaluated using the Quality

Model of ISO 9126. Below are the five quality characteristics and its sub characteristics

for evaluation:
1. Functionality- A set of attributes that bear on the existence of a set of

functions and their specified properties. The functions are those that satisfy

stated or implied needs.

a. Suitability- This is the essential Functionality characteristic and refers

to the appropriateness of the functions of the software.

 47

2. Accuracy- A sub-characteristic under functionality that allows drawing

conclusions about how well software achieves correct or agreeable results. It

correlates with metrics which measure attributes of software that allow to

conclude about its provision of correct or agreeable results.

3. Efficiency and Effectiveness- A set of attributes that bear on the relationship

between the level of performance of the software and the amount of resources

used, under stated conditions.

a. Time Behavior- A sub-characteristic that characterizes the response

time for a given thru put.

b. Resource Behavior- A sub-characteristic that characterizes the

resources used.
c. Compliance- A sub-characteristic allows to draw conclusions about

how well software adheres to application related standards,

conventions, and regulations in laws and similar prescriptions.

4. Reliability- A set of attributes that bear on the capability of software to

maintain its level of performance under stated conditions for a stated period of

time.
a. Maturity- This sub-characteristic concerns frequency of failure of the

software.
b. Fault Tolerance- The ability of the software to withstand from

component or environmental failure.

c. Recoverability- ability to bring back a failed system to full operation,

including data and network.

5. Usability- A set of attributes that bear on the effort needed for use, and on the

individual assessment of such use, by a stated or implied set of users.

a. Understandability- Determines the ease of which the systems

functions can be understood, relates to user mental models in Human

Computer Interaction methods.

 48

b. Learn ability- Learning effort for different users, i.e. novice, expert,

casual etc.
c. Operability- Ability of the software to be easily operated by a given

user in a given environment.

Instrument and Techniques Used

The method questionnaire and evaluation are used in this research. This particular

instrument has been chosen due to the unique characteristics and efficiency of the project.

The researchers used different techniques to gather important information that will be

needed for the development of the Currency exchange machine. This instrumentation

helped to identify problems, difficulty encountered by the user by observing how the

machine works. This type of data gathering instrument where in the 30 respondents

composed of 15 professionals and 15 users evaluated the proposed project and gave some

opinions and suggestions. Criteria for the evaluation were Functionality, Efficiency and

Effectiveness, Accuracy, Reliability and Usability. The data that were obtained from this

research was treated as statistics. It was analyzed using mathematical equations.

Mean is obtained by adding all scores in the set divided by the number of scores

in the set. The formula for mean is

(X) = ----------------- (3.1)

Where: (X) is the computed mean

X is the sum of all the scores in the set

N is the total numbers of scores in the set

 49

The mean would be used to determine the evaluation of the respondents. Certain

degree of evaluation was given and each corresponds to the amount of quality that the

answer provides.

Table 3.1 Five Point Likert Scale

Scale Range Interpretation

5 4.50-5.00 Strongly Agree

4 3.50-4.49 Agree

3 2.50-3.49 Undecided

2 1.50-2.49 Disagree

1 1.00-1.49 Strongly Disagree

In Table 3.1 the mean that was computed from the evaluators was interpreted

using the Likert scale.

Chapter 4

RESULTS AND DISCUSSION

This chapter represents all the solutions the researchers gather which answer all

the questions regarding the problem stated in the problem statement. This chapter

contains the descriptions and capabilities of the machine that the researchers conduct in

making the study feasible. This chapter also contains all the results of the evaluations the

researchers prepared for the study.

Project Description
 50

The Automatic Currency Exchange Machine with Bill Authenticity Checker is

composed of a hardware device and a software program. The hardware part of the

machines task is to interact with the users that will use the machine. The researchers

carefully analyzed and studied the system to obtain the requirements needed to run and

built the system. This section present the specification of software and hardware

requirements of the proposed project.

Table 4.1 CPU Requirements for the Automated Currency Exchange Machine with

Bill Authenticity Checker

Machine Specifications
(CPU) x86-64 (64-bit)
Processor Atleast I5 (Intel)
Memory Atleast 2 GB capacity
Video 1024 x 768, 16-bit color
Hard Disk 200 MB (no local data set)

Table 4.1 shows the list of specifications of the CPU used for the Automated

Currency Exchange Machine with Bill Authenticity Checker. The CPU of the laptop that

can be used in controlling the machine should at least have these following specifications

for the machine to function to its fullest.

Table 4.2 Peripherals Requirement for the Automated Currency Exchange Machine

with Bill Authenticity Checker

Machine
Specification
(Peripherals)
LCD Monitor Touch screen, standard size 17 inches
Thermal Printer USB Printer Cable
With at least 16 megapixel and above
Webcam
 51

Bill Acceptor Atleast Apex 5400(pyramid technology inc.) series and above
Bill Dispenser F56 Bill dispensing Unit(Max Combo II) Series
Coin Dispenser
US 6823977 B2 (ASAHI SEIKO CO., LTD., JAPAN)
/Hopper
Black light 22O Volts Power Source
220 Volts Power source
Power Source(s) 12Volts, 1 Ampere Power Source
5 volts, 2 Ampere Power Source
Relay 12Volts
Transistor LN4004
Resistor 1000 Kilo ohms, 1/4 watts
Diode Protective Diode

Table 4.2 shows the list of all peripherals needed to construct the Automated Currency

Exchange Machine including the mechanism and electronic parts.

Table 4.3 Program Requirements and its Specifications

Program Software Specifications

CPU Windows 8 or higher version of OS; Intel Itanium 3 or higher

version
Arduino software Windows OS; 8 bit ; 64 bit

90MHz or higher microprocessor; Windows OS ; 32MB RAM ;

Visual Basic 6.0 35oMB disk space requirement;

640x480 minimum resolution

Prolific Driver Windows OS

1GB RAM; 5GB hard disk space; 1.6GHz processor (minimum);

Visual Studio 2015 Windows OS; 1024 x 768 resolution

 52

Open CV Phyton Libraries; Web Browser of your choice; Windows OS; 32

or 64 bit;
Elo touch drivers Windows OS; VGA and USB port

Table 4.3 shows the list of all the programs used and required for the construction

of the Automated Currency Exchange Machine with Bill Authenticity Checker

Project Structure
The researchers based the measurements of the machine to the average ATM

machine dimensions and also considered the space that the components inside the

machine needed. The machine stands 5 feet in height and the screen is 4.5 feet from the

bottom of the machine which is the average eye level of the user, this will ensure

customers can easily view and access the input controls on the touchscreen. The five bill

acceptors are placed side by side with each other and also the four dispensers at the lower

part of the machine are considered, making the machine 2.25 feet. Labels are placed

accordingly in every slots and step by step transactions are provided on the screen as the

user goes along the transaction.

 53

Figure 4.1 Autocad Layout with the Actual Picture of the Automated Currency

Exchange Machine with Bill Authenticity Checker

Figure 4.1 shows the screen shot of the autocad layout that was used by the

researcher during the planning and the actual picture of the chassis of the machine.
54
 55

Figure 4.2 Automated Currency Exchange Machine with Bill Authenticity Checker

Hardware Integration

In Figure 4.2 shows that the plyboard cutted used for the casing of the device and putting

them together with the materials to make the device stable.

Figure 4.3 Autocad of the Separated Wood Cuttings of the Automated Currency

Exchange Machine with Bill Authenticity Checker

Figure 4.3 shows each parts /wood cuttings that was used for the planning of the

chassis of the Automated Currency Exchange Machine with Bill Authenticity Checker in

Autocad.

Project Capabilities and Limitation

The following situations are the basis on how the capabilities are being observed:

1. The Automatic Currency Exchange Machine with bill authenticity

checker can identify fake paper money inserted and the money will not be

accepted.
2. The machine can accept and exchange US Dollar to Philippine peso

while New Taiwan Dollar, Japanese Yen, Saudi Riyal and Korean Won
 56

will be represented by designated Philippines Peso bills but still will be

converted Philippine Peso according to its original foreign currency

value.

Legend:
Bill Acceptor #2 New Taiwan Dollar

Php 20 100 TWD

Php 100 -200 TWD

Php 1000 - 500 TWD

Bill Acceptor #3 Japanese Yen

Php 20 1000 Yen

Php 100 2000 Yen

Bill Acceptor #4 Korean Won

Php 20 1000 Won

Php 100 5000 Won

Php 1000 10,000 Won

Bill Acceptor #5 Saudi Riyal

Php 20 5 Riyal

Php 100 10 Riyal

Php 1000 50 Riyal

3. The machine can be updated manually by the administrator through a

secured access.
 57

4. A user friendly graphical interface is provided by a touch screen monitor

and for every transaction, a printed receipt will be dispensed by the

machine.
5. The machine will go offline if there is not enough money inside according

to its limit and will also send notification to the owner. It will inform the

user if the money is not enough to finish the current transaction.

In every project, the functions are bounded by a restriction. They are as follows:

1. The machine cannot accept actual New Taiwan Dollar, Japanese Yen,

Korean Won and Saudi Riyal because the bill acceptor used is only for

simulation and only dummy bills, the Philippine Peso bill, may be used.
2. The machine has a limit of Php 1000 for the maximum amount that the

machine can dispense for a single transaction.

3. Fake bills that have gone through bleaching process cannot be identified

fake by the machine.

4. Crumpled, torn or bills with vandals will not be accepted.
5. Bills that are being inserted may be randomly rejected because of the

sensitivity of the bill acceptors.

6. The machine does not come with an anti-theft system for better security.

Project Evaluation

The Automatic Currency Exchange Machine with Bill Authenticity Checker was

evaluated according to its Functionality, Efficiency and Effectiveness, Accuracy,

Reliability and Usability. Below are the results of the evaluation from thirty (30)

respondents, fifteen (15) classified as users and fifteen (15) classified as professionals,

which were analysed and interpreted though graphs and charts by the researchers
 58

Table 4.4 Evaluation of the Automatic currency Exchange Machine with Bill

Authenticity Checker According to its Functionality

Functionality MEAN INTERPRETATION

1 The currency exchange rate updates when 3.37 Undecided

administrator inputted data manually
2 The conversion of the currencies follows 3.87 Agree
updated exchange rate data.
3 The machine dispenses the Philippine Peso 3.9 Agree
bills and coins.
4 The machine rejects the bills being inserted 3.7 Agree
if detected fake.
5 The machine does not accept any other 3.8 Agree
currency other than the selected currency.
Overall Mean 3.73 Agree

Table 4.4 shows that the machine obtained an overall mean of 3.73, which shows that the

respondents agree to its functionality.

On the next page is the representation of the mean of the all the questions for the

functionality criteria.

4
3.9
3.8
3.7
3.6
3.5
3.4
3.3
3.2
3.1
Question 1 Question 2 Question 3 Question 4 Question 5

Figure 4.4 Bar Chart Comparison for Functionality

 59

Figure 4.3 shows that out of all the questions for the Functionality, Question 3 got

the highest mean of 3.9, which interprets as agree and Question 1 got the lowest mean of

3.37, which interprets as undecided.

Table 4.5 Evaluation of the Automatic currency Exchange Machine with Bill

Authenticity Checker according to its Efficiency and Effectiveness

Efficiency / Effectiveness MEAN INTERPRETATION

1 Time consumed for converting currency to 3.6 Agree
other desired currency.
2 Time consumed before money is dispensed as 3.4 Undecided
the currency to be converted to.
3 The machine responds correctly to the users 4.6 Strongly Agree
selections.
4 The machine operated autonomously and 4 Agree
unaided of man power for supervision of
operation.
5 The machine can enhance the current currency 4 Agree
exchange transaction in terms of convenience
and time consumption.
Overall Mean 3.92 Agree

Table 4.5 shows that the machine obtained an overall mean of 3.92, which shows

that the respondents agree to its efficiency and effectiveness.

Below is the representation of the mean of the all the questions for the Efficiency

and Effectiveness criteria.

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5
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0

Figure 4.5 Bar Chart Comparison for Efficiency and Effectiveness

Figure 4.4 shows that out of all the questions for the Efficiency and Effectiveness,

Question 3 got the highest mean of 4.6, which interprets as agree and Question 2 got the

lowest mean of 3.4, which interprets as undecided.

Table 4.6 Evaluation of the Automatic currency Exchange Machine with Bill

Authenticity Checker according to its Accuracy

Accuracy MEAN INTERPRETATION

1. The machine converts values correctly. 4.6 Strongly Agree
2. The amount dispensed by the machine is correct 3.8 Agree
and according to the conversion.
3. Operates accurately in fake money detection. 3.8 Agree
4. The machines currency exchange rate data is up 3.8 Agree
to date and correct.
5. The machine detects the value of the bills being 4.4 Agree
inserted accurately.
Overall Mean 4.08 Agree

Table 4.6 shows that the machine obtained an overall mean of 4.08, which shows

that the respondents agree to its accuracy.

Below is the representation of the mean of the all the questions for the Accuracy

criteria.
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5
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0

Figure 4.6 Bar Chart Comparison for Accuracy

Figure 4.5 shows that out of all the questions for Accuracy, Question 1 got the

highest mean of 4.6 which interprets as agree and Question 2, 3 and 4 got the same value

of 3.8, which interprets as undecided.

Table 4.7 Evaluation of the Automatic currency Exchange Machine with Bill

Authenticity Checker according to its Reliability

Reliability MEAN INTERPRETATION

1. The machine is reliable in terms of performance, 4.6 Strongly Agree
accuracy and efficiency.
 62

2. The machine has the ability to operate full time 3.8 Agree
and be available at any time when needed.
3. The machine fetches data every 12 hours for 3.8 Agree
update for accurate results.
4. The correctness of the conversion and exchange 3.8 Agree
for every transaction is consistent.
5. The machine does not fail repeatedly during each 4.4 Agree
transactions.
Overall Mean 3.8 Agree
Table 4.7 shows that the machine obtained an overall mean of 3.8, which shows that the

respondents agree to its reliability.

Below is the representation of the mean of the all the questions for the Reliability

criteria.

5
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
Question 1 Question 2 Question 3 Question 4 Question 5

Figure 4.7 Bar Chart Comparison for Reliability

Figure 4.6 shows that out of all the questions for the Reliability, Question 1 got

the highest mean of 4.6, which interprets as agree and Question 2, 3 and 4 got the same

value of 3.8, which interprets as undecided.

Table 4.8 Evaluation of the Automatic currency Exchange Machine with Bill

Authenticity Checker according to its Usability

Usability MEAN INTERPRETATION

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1. The machine is easy to operate by anyone. 4.6 Strongly Agree

2. The machine provides instructions for every step 4.6 Strongly Agree
until the end of the transaction.
3. Selections can be easily made with the machines 4.4 Agree
touchscreen.
4. The outer design of the machine can be easily 4.4 Agree
understood with bill and coin slots that are easy
to locate.
5. The font on the screen of the machine is big 4.2 Agree
enough to be readable.
Overall Mean 4.44 Agree

Table 4.8 shows that the machine obtained an overall mean of 4.44, which shows

that the respondents strongly agree to its usability.

On the next page is the representation of the mean of the all the questions for the

Usability criteria.

4.7

4.6

4.5

4.4

4.3

4.2

4.1

4
Question 1 Question 2 Question 3 Question 4 Question 5

Figure 4.8 Bar Chart Comparison for Usability

Figure 4.7 shows that out of all the questions for the Usability, Question 1 and 2

got the highest mean of 4.6, which interprets as agree and Question 5 got the lowest mean

of 4.2, which interprets as agree.

Comparison of the Study to the Existing Related Studies

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Comparison of some related study to the researchers machine to local study:

Most of the currency exchange machine that exists in current era only functions

between two currencies only. On the other hand, the researchers machine is capable of

handling more types of currency through the use of the Legend (dummy) rate, which can

handles specifically up to 5 types of currency.

Comparing some related study to the researchers machine locally:

Microcontroller Based Bill to Coin Changer with UV Light Dependent Counterfeit

Sensor. This study aims to change the peso Bill inserted through the machine to peso

coins. The same concept is done by the researchers machine as the Microcontroller

based Bill to coin Changer only runs using one type of currency only, the Peso bill or

Peso coin, the output of the machine still the same but the input money that will be

inserted

Comparison of some related study to the researchers machine to foreign study:

Comparing the existing study with the currency detection which is Automated

Cash Deposit Machine with Currency Detection Using Fluorescent and UV Light to the

Automated Currency Exchange Machine with Bill Authenticity Checker, uses UV light

for detecting the currency but also using image processing as a way of determining what

currency is scanned in the system. Using image processing, the analyzation of the color

and shape of the money used gives the accurate value of the money, similar to face

recognition system and fingerprint recognition system but the techniques that are used to

each one is different.

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Table 4.9 Analysis of the Existing and the study

Existing System Automated Currency Exchange

CRITERIA (Money Changers) Machine with Bill Authenticity
Checker
Functionality The input has only one Can handle up to 5 types of
slot for one currency currency input through the
only. use of the US dollar Rate
and Legend (dummy) rates.
Efficiency and Money Changers that Much faster and easier than
Effectiveness checks each currency changing currency through
manually and Money Changers because of
exchanging it to Image recognition.
desired currency.
Accuracy Bills authenticity is Accurate by using Image
made manually. And processing and the rate
exchanging it by programmed through the
calculating through use machine.
of Calculator.

Reliability Opens up to a certain Can operate up to 24 hours.

time only and can be
found in specific places
and stores only.
 66

Usability Waiting in the counter Interface which one can

while the process is interact independently
ongoing.

Table 4.9 shows the different criteria which Functionality, Efficiency and

Effectiveness, Accuracy, Reliability and Usability of the Automated Currency Exchange

Machine with Bill Authenticity Checker in comparison to the existing.

Chapter 5

SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

Summary

This study was conducted to contribute to the development of the existing method

currency exchange service as the foreign exchange in the Philippine market grows

rapidly, resulting to the increasing demand for exchange outlets. The researchers aim to

design an Automated Currency Exchange Machine with Bill Authenticity Checker that

automatically converts foreign currency to Philippine Peso. The machine uses UV light,

camera and image processing to determine the authenticity of the bill inserted and the

exchange rate data is updated through an android phone, by the administration or owner

so that the data used for the conversion of the currencies is accurate, according to the

world exchange rate data.

 67

As a part of the study, the researchers sought some related theories, literature and

studies to further gather significant information and prove some statements in this study.

Included in the related literature is the statistics report in 2016 of Department of Tourism

in the Philippines that shows the Top Foreign Visitors in the Philippines from 2012

2016, which shows that Korea is the top foreign visitor, followed by China, USA, Japan

and Taiwan being the 5th in rank. The statistic report of Bangko Sentral ng Pilipinas

about the Top 5 countries that sources most of OFW remittances which are: United

States, Saudi Arabia, United Arab Emirates, United Kingdom and Singapore, respectively

was also included in the related literature.

This study is designed as a Descriptive Research to help provide answers to

questions of who, what, when, where and how associated with a particular research

problem but cannot conclusively ascertain answers to why. For the representation of the

development process, the V-model was used because it is the most accurate among any

other model for this study.

The Automated Currency Exchange Machine with Bill Authenticity Checker is

evaluated by thirty (30) respondents, fifteen (15) users and fifteen (15) professionals and

the results were tallied by the researchers. For the functionality criteria, the highest mean

obtained for each question is 3.87 and the lowest is 3.37 which gives an overall mean of

3.73, which means that the respondents agree to its Functionality. For the efficiency and

effectiveness criteria, the highest mean obtained for each question is 3.9 and the lowest is

3.4 which gives an overall mean of 3.7, which means that the respondents agree to its

Efficiency and Effectiveness. For the Accuracy criteria, the highest mean obtained for

each question is 4.17 and the lowest is 3.43 which gives an overall mean of 3.73, which
 68

means that the respondents agree to its Accuracy. For the machines reliability criteria,

the highest mean obtained for each question is 3.9 and the lowest is 3.3 which gives an

overall mean of 3.72, which means that the respondents agree to its Reliability and for the

last criteria, usability, the highest mean obtained for each question is 4.3 and the lowest is

3.53 which gives an overall mean of 4.0, which means that the respondents agree to its

Usability. This results showed that the machine functions and operates as it is supposed

to.

Conclusion

The researchers have achieved answers for the stated questions of this study. Here

are as follows:

1. How to design an Automated Currency Exchange Machine with Authenticity checker

which performs an operation that automatically converts a currency to Philippine

Peso?
The researchers came up with the design of the machine by dividing it into two

parts: The Hardware part and the Software part.

For the hardware part, the researchers first made the casing by designing and

researching the standards on making a cash machine and then made the outline in the

Autocad including all the measurements of the wood that is used for the chassis then

measured and cut the planned design on wood and built it as a whole. The researchers

also bought all the components needed for the machine such as the Apex Bill acceptors,

Bill dispenser, Coin dispensers, Arduino mega, Elotouch touchscreen monitor, thermal

printer, relay circuits for switching. After the casing was done, the components were
 69

fixed in the chassis and connected all the wire connections for the components to be

connected to each other.

As for the software part, the researchers built the software using software such as

Open CV, Arduino IDE, Visual Basic 6.0, Visual studio and the prolific. The functions of

the Image processing were coded using the Open CV, Visual studio and Python. The

Arduino's logic were programmed including the conversion of the currencies. Due to the

availability problems that the researchers encountered with the bill acceptors, US dollar

bill acceptor was the only acceptor that can accept the actual; foreign currency while for

the other four foreign currencies, Philippines Bill Acceptor was used and the Philippines

Bills as used as a dummy bill with representations for each foreign bill set by the

researchers.

LEGEND:

Bill Acceptor #1 US DOLLAR

Bill Acceptor #2 New Taiwan Dollar

Php 20 $100

Php 100 -$200

Php 1000 - $500

Bill Acceptor #3 Japanese Yen

Php 20 1000 Yen

Php 100 2000 Yen

Bill Acceptor #4 Korean Won

Php 20 1000 Won

Php 100 5000 Won

Php 1000 10,000 Won

 70

Bill Acceptor #5 Saudi Riyal

Php 20 5 Riyal

Php 100 10 Riyal

Php 1000 50 Riyal

Then Visual Basic was used for the interface of the machine. The last phase, was the

Integration of the Hardware and the software which did the function to convert the

currency inserted to Philippine Peso.

2. How to design a machine that can detect whether the money inserted is fake or not

through the use of UV light, camera and image processing?

For the machine to accept money, the bill acceptor is needed, the machine in this

study consists of five (5) bill acceptors. The bill that was fed to the acceptor goes to the

cash storage at the back of the acceptor where it stacks there so the latest bill inserted is

on top. The top lid should be fixed open so that the bills stored there are visible in the

camera and the camera should be placed at the topmost part of the machine, high enough

for its view to accommodate all five bill acceptors that were placed side by side with each

other. The UV light is also placed on the topmost part of the machine and it shines at the

bills to project the necessary watermarks for the validation and that is what the camera

captures. Afterward, the OpenCV, which does the image processing, processes the images

captured and compares it to the images stored in its library, if the image found a match, it

is accepted by the machine and the transaction continues but if it does not, the user will
 71

be notified that there is a problem with the bill authenticity. However, the bill cannot be

retrieved anymore.

3. How will the machine update its exchange rate data so that the conversion of values

from one currency to another is based on a world currency exchange rate and

accurate?

The exchange rate data of the Automated Currency Exchange machine is updated

manually using the secured administrator access of the machine.

4. What are the factors to be considered on the physical design of the machine so that it

will be easy to operate by the users?

The physical design of the machine is made relatively similar to an Automated Teller

Machine because some components and functions are similar. The researchers based the

measurements of the machine to the average ATM machine dimensions and also

considered the space that the components inside the machine needed. The machine stands

5 feet in height and the screen is 4.5 feet from the bottom of the machine which is the

average eye level of the user, this will ensure customers can easily view and access the

input controls on the touchscreen. The five bill acceptors are placed side by side with

each other and also the four dispensers at the lower part of the machine are considered,

making the machine 2.25 feet. Labels are placed accordingly in every slots and step by

step transactions are provided on the screen as the user goes along the transaction.

5. What are the salient features of the proposed design compared to the existing method

of currency exchange?
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The most salient feature of the machine is the automated operation that requires no

more teller in making a transaction. From the acceptance of the bill, validity checking,

the conversion, dispensing of converted cash up to the dispensing receipt are all

automated. The machine is a stand-alone except the update of the exchange rate data and

restocking cash inside. When the machine reached its minimum limit of cash stock, the

machine will go offline automatically, disabling any use for transaction and sends text

message to the administrator to refill the machine. Compared to the existing method of

currency exchanging in the Philippines, the Automated Currency Exchange Machine with

Bill Authenticity Checker requires no man power supervision 24/7 for its operation.

6. How the machine will be tested and evaluated according to the following criteria:

Functionality, Efficiency, Accuracy, Reliability and Usability.

The researchers conducted evaluation with thirty (30) respondents, fifteen (15) users and

fifteen (15) professionals with a questionnaire containing twenty five (25) questions, five

(5) for each criteria. The machine was tested multiple times before and during the

evaluation, inserting bills on each bill acceptor and completing multiple transactions.

Through the evaluation, the researchers were able to see problems in different situation

and the respondents were also able to leave comments and suggestions for the machines

development. The results tallied for overall mean for Functionality is 3.73, which means

that the respondents agree to its Functionality. For the efficiency and effectiveness

criteria, the overall mean of 3.7, which means that the respondents agree to its Efficiency

and Effectiveness. For the Accuracy criteria, the overall mean of 3.73, which means that

the respondents agree to its Accuracy. For the machines reliability criteria, the overall
 73

mean of 3.72, which means that the respondents agree to its Reliability and for the last

criteria, usability, the overall mean of 4.0, which means that the respondents agree to its

Usability. This results showed that the machine functions and operates as it is supposed

to.

Recommendations

The following recommendations are a product of the study about the Automated

Currency Exchange Machine with Bill Authenticity Checker that the researchers listed

for the future researchers for the future development of this study.

1. The future researchers may use an actual foreign bill acceptor aside from the US

dollar acceptor in replacement for the current dummy acceptors to be able to

insert an actual foreign currency.

2. The machine may use server with a service provider to connect to the internet for

an automatic exchange rate update directly to the internet but this may need a

bigger budget.
3. For an additional feature, if the machine was not updated on the next 12 hours

after the last update, a notification can be sent to the administrator.

4. The future researchers may use a bill acceptor, bill dispenser and coin dispenser

that has a bigger capacity to hold more cash inside the machine.
5. The future machine that will be developed may use a sturdier material than wood,

for example steel, for the chassis and add an anti-theft system for better security.