Counters for the various kinds of banknotes require high-speed distinctive point extraction and recognition. In this paper we propose a new point extraction and recognition algorithm for Euro banknotes. For distinctive point extraction we use a coordinate data extraction method from specific parts of a banknote representing the same color. To recognize banknotes, we trained 5 neural networks. One is used for inserting direction and the others are used for face value. The algorithm is designed to minimize recognition time by using a minimal amount of recognition data. The simulated results show a high recognition rate and a low training period. The proposed method can be applied to high speed banknote counting machines.