The #1 thing we could do to advance this, and make it actually happen sooner, would be to offer a small charge, similar to the "Out of Network" charge that is given to the bank/network in exchange for letting the public use the ATMs and network to vote.
If you were to allow each State to construct a Trust Fund, forgive the Capital Gains and State taxes and then use the resultant Interest, Earnings, and Dividends to pay the ATM Network 50 cents a vote, or some reasonable number, IT WOULD BE WORTH IT TO THEM to want to pursue this as a new profit center.
I would stipulate though, that a percentage of these charges would have to be placed into a special Trust Fund that the Institutions would own, also tax free, for the purpose of supplying the capital for replacing ATMs and associated Network equipment , the second largest problem.
The banks and network, DON'T WANT TO UPGRADE to three factor authentication as it is, due to the expense, EVEN THOUGH... they are be robbed blind by thieves and schemers! They would rather pay the insurance, than upgrade the network. The Europeans already use the Smart Cards, but these guys don't want to upgrade that either!
So.... I would assert that the major obstacle to implementation, is cost, not technological developments. WE HAVE ALL THE COMPONENTS ALREADY!
There may be a political set of obstacles as well, but those would be a LOT EASIER to defeat, if the banks and the network was on our side. The way to get hem on our side, would be to offer them a way to help pay for the upgrades and deployment costs, in exchange for the development of the ATM network to accomplish the most import infrastructure we have, VOTING.
A pile of money, would also go a long way to getting Diebold on board too. Right now, they are more interested in creating a WHOLE NEW type of machine so they can expand the product line, but... those are NEVER going to be as secure and have all the features using the ATM Network would. So... they would need to be re-focused and properly incentivised..
Need to solve the money issues FIRST... the rest will follow.
ALSO... it would be a REALLY good idea, to find a Grant, create a multi-college "Test Bed", and start writing the code for whichever platform is the latest, greatest, 3 factor authentication platform. I think Japan is ALREADY using three factor auth, so... I would DEFINITELY look that manufacture, and let Diebold KNOW.... we are going to use the platform that help us get there the fastest, and with the most support.
Now, how about a handful of machines to work with, and some development capital? OR... KICKSTARTER?
MAN... if I hit the Lotto, we are going to start a company, and drive this bad-daddy over the line!