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I'd like to build a machine for counting bills and during the counting process, I want to check whether the paper money is counterfeit or not.

Is the Raspberry Pi capable of doing this or would I be better off using a different board?

Thank you for your answers; after some testing with arduino, raspberry pi and beaglebone black, it seems that beaglebone black or zynq like platform be my choice. I need faster ADC processing for contact image sensor and this cannot be done with arduino or raspberry pi.

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It depends on exactly what sensors you need to connect. Are there lots of analog sensors? The Arduino might be better. I personally don't know how easy it is or not to detect counterfeit currency? Is there a sophisticated algorithm involved? Maybe the Pi might be better. How are you communicating the data? A continuously running log file? Raspberry Pi. Some status LEDs? Arduino. Does it need a camera? Raspberry Pi.

What are you most comfortable programming in? Python? Java? C++? Raspberry Pi. Embedded C in an IDE, Arduino.

I really think it could work either way. You need to investigate what's involved more (or tell us more!) to help narrow it down. I think it's a feasible project with either device. I'd go for the Pi simply because I don't have much Arduino or mircocontroller experience, but that's just me.

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I think arduino is more suitable in your case, you can easily attach and configure the sensors with a simple output to indicate the number of the counter.

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