The banking system largely operates on outdated COBOL programming, causing delays in payment processing and limiting real-time financial transactions. Despite modern payment methods like credit cards and apps, banks still batch process payments overnight due to their reliance on legacy systems. About 43% of global banking systems, comprising 80% of in-person and 95% of ATM transactions, still use COBOL, creating risks when transitioning to newer technologies. JPMorgan's new deposit coin, utilizing Coinbase's BASE blockchain, aims to streamline operations by reducing the reliance on COBOL. Similarly, Coinbase appears to help Shopify implement an on-chain payments protocol that utilizes smart contracts, improving efficiency and reducing costs. Traditional financial institutions are taking notice, as evidenced by the fluctuating stock prices of Visa and Mastercard amid stablecoin fears. Fiserv, a key fintech provider, plans to launch a stablecoin, potentially disrupting existing middleware solutions connecting batch-processing COBOL systems to real-time payments and steering banks toward modern technologies and away from legacy systems.

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