As the news Thursday (Jan. 9) that FV Bank is expanding its stablecoin capabilities via a partnership with PayPal underscores, businesses need a blockchain strategy.
The problem? At a technical and business level, certain blockchain applications remain cramped by interoperability.
At their core, blockchain payments like stablecoins are built on intricate systems composed of various layers, from the underlying distributed ledger technologies to smart contracts, APIs and user-facing applications.
Each component has specific dependencies, and ensuring they work together smoothly can pose a challenge. Complicating matters, blockchains themselves often operate in silos, adhering to protocols that are unique to a particular network, such as Ethereum, Bitcoin, or Solana. While these silos have driven innovation within their ecosystems, they’ve also created potential barriers to broader adoption, particularly for enterprise and financial operations.
Going forward, observers believe two key things may need to happen for blockchain to move from buzzword to widely embraced integration: first, usability needs to be prioritized; and second, interoperability must be found.
Read more: Stablecoin Sandwiches? Here’s What CFOs Need to Know About Crypto Jargon
Blockchain interoperability is about more than just linking disparate parts via native interfaces. It’s about building an infrastructure where multiple blockchains, applications and payment networks can interact effortlessly. This can require addressing compatibility at both the technical and organizational levels.
For instance, consider a multinational corporation paying supply chain partners with stablecoins operating across different blockchain platforms, while using an entirely separate blockchain solution for logistics and tracking. Without interoperability, the corporation faces inefficiencies, such as having to develop costly middleware solutions or manually reconcile data between systems.
But technology alone isn’t enough. Businesses must adopt a mindset shift, viewing interoperability as a collaborative effort rather than a competitive advantage. This means participating in consortia, aligning with industry standards, and embracing governance models that prioritize transparency and inclusivity. Without this level of cooperation, even the most advanced technical solutions will struggle to gain traction.
Blockchain initiatives like Project Agora from the Bank for International Settlements (BIS) highlight the impact of collaborative efforts on interoperable systems. Forty-one private sector financial firms have joined the project, including Citi, JPMorgan Chase, Deutsche Bank, UBS, Visa and Mastercard, exploring new blockchain solutions using smart contracts and programmability in partnership with seven central banks: the Bank of France (representing the Eurosystem), Bank of Japan, Bank of Korea, Bank of Mexico, Swiss National Bank, Bank of England and the Federal Reserve Bank of New York.
“The largest financial institutions are eager to explore tokenized assets,” Nikola Plecas, head of commercialization, Visa Crypto, told PYMNTS, but noted that they require regulatory certainty to do so at scale.
Read more: Why Banks Might Want to Have a Blockchain Strategy
Consider the financial services sector, where payment networks and settlement systems are critical components. In this space, blockchain’s fragmentation can be a bottleneck. A bank might use one blockchain for cross-border payments and another for smart contracts, but without interoperability, these systems remain isolated, requiring additional middleware or manual reconciliation.
The PYMNTS Intelligence report “Can Blockchain Solve the Cross-Border Payments Puzzle?” examined how blockchain could transform cross-border payments, while also assessing its current adoption and exploring the future implications for financial institutions and businesses.
As blockchain payments gain traction, interoperability will likely become a defining factor in the technology’s success. The winners won’t be those who build the most sophisticated silos but those who build the strongest bridges.
For example, the USDC stablecoin is natively supported for 16 blockchain networks: Algorand, Arbitrum, Avalanche, Base, Celo, Ethereum, Hedera, NEAR, Noble, OP Mainnet, Polkadot, Polygon PoS, Solana, Stellar, Sui and ZKsync
Data shared by PYMNTS Intelligence indicates that permissioned decentralized finance (DeFi) could reduce transaction costs by up to 80% compared to traditional methods, while features such as automated recordkeeping and smart contracts improve transparency and efficiency, and stablecoins, pegged to fiat currencies, offset volatility concerns.
“Blockchain technology, and public blockchains in particular, are opening up a number of new use cases one of which is to transfer value — such as remittances — from one country to another,” Raj Dhamodharan, EVP blockchain and digital assets at Mastercard, told PYMNTS.
We get a lot of press releases here at PYMNTS. We consider all of them, and some are more newsworthy than others. But this one really got our attention. This past week, Diebold Nixdorf made headlines with its announcement of successfully installing two new automated teller machines (ATMs) at the U.S. National Science Foundation’s McMurdo Station in Antarctica. This achievement marks a significant milestone in banking accessibility, to be sure. We would like to meet the crew that installed them. We’d also like to know why they needed two. Was there a line at the first one? More to come on that.
According to Diebold, McMurdo Station is Antarctica’s largest research and logistics hub, supporting a fluctuating population that ranges from fewer than 200 residents during the winter months to up to 1,100 individuals during the summer (October through February). The presence of these ATMs is crucial, it says, as the next closest banking facilities are thousands of miles away, making them the only ATMs on the entire continent. How’s that for a value proposition?
The DN Series ATMs are designed for always-on availability. And why do they need two? One ATM is actively in use, while the second serves as a backup for spare parts, ensuring uninterrupted service in this isolated area. These machines are connected to the DN AllConnect Data Engine, which leverages Internet of Things (IoT) connectivity, machine learning, and artificial intelligence (AI) to monitor their performance. A dedicated team continuously aggregates and analyzes technical data to identify potential issues, enabling remote diagnostics and repairs. The ATM can be maintained by trained staff at NSF McMurdo Station, or the Diebold Nixdorf service team can remotely guide them through the repair process.
Anyway, it got us thinking. Are there other surprising ATMs in extreme locations? Well, of course, there are. Here’s a sampling of what we found.
At an altitude of about 5,364 meters (17,600 feet), the Mount Everest Base Camp in Nepal is another unexpected place to find an ATM. Although it’s not a permanent fixture and is often set up seasonally, it caters to climbers and trekkers who need cash for local transactions. This temporary ATM service underscores the adaptability of banking services in extreme environments.
In some parts of the Amazon rainforest, particularly in Brazil and Peru, ATMs can be found in small villages and towns. These machines are vital for local communities, providing access to cash in areas where digital payment options might be limited. The presence of ATMs here demonstrates how banking services can reach even the most remote communities.
Located in the Tibet Autonomous Region, Nagqu is home to one of the highest ATMs in the world. This region is very remote, with limited infrastructure, making the presence of an ATM a notable example of banking accessibility in extreme environments.
In the Thousand Islands (Kepulauan Seribu) off the coast of Jakarta, Indonesia, there’s a floating ATM. This unique ATM serves the local community and tourists on the islands, demonstrating how banking services can adapt to isolated marine environments.
Longyearbyen, the administrative center of the Svalbard archipelago in Norway, boasts the most northerly ATM. This location is one of the most remote inhabited places on Earth, with limited access to mainland Norway, making the ATM a vital service for residents and visitors.
On a more serious note, the installation of ATMs in places like Antarctica and other remote locations highlights the evolving nature of banking technology. With advancements in IoT, AI and remote diagnostics, it’s becoming increasingly feasible to provide banking services in areas previously considered inaccessible. As we look to the future, it will be interesting to see where else ATMs might appear. Whether it’s on a remote island, at the top of a mountain or even in space, the ability to access cash is becoming more universal than ever. And who knows? Maybe one day, we’ll see an ATM on Mars, serving the first interplanetary travelers.
For now, the presence of ATMs in unexpected places reminds us that banking is not just about transactions; it’s about connecting people and communities across the globe, no matter how remote they might be.
