Crypto has no doubt moved past its initial stage as an underground passion project for tech enthusiasts. It's now a bona fide investment vehicle and digital asset, used both as a store of value and for everyday transactions. However, making crypto accessible and user-friendly for the average consumer has not been entirely solved; there's still work to be done. Neil Bergquist, CEO of crypto exchange Coinme, has been working on this problem for over a decade. After celebrating Coinme's 10th anniversary this year, Bergquist recently shared some insights into Coinme's approach to simplifying crypto transactions—and the hurdles the industry still faces in achieving mainstream adoption.
'We Just Want to Make Bitcoin Accessible'
Founded in 2014, Coinme operates a network of crypto-enabled kiosks and ATMs across the United States, allowing users to buy and sell bitcoin and other cryptocurrencies using cash. The company has focused on creating intuitive interfaces and eliminating technical barriers that often deter newcomers to the crypto space.
"We just want to make bitcoin accessible," Bergquist explains. "A lot of people hear about it at the Thanksgiving table, but that doesn't mean they can go buy it right then and there. You need to have a way to access, to be able to buy it."
Coinme's approach centers on three key pillars: trust, accessibility, and affordability. Through obtaining proper licensing and partnering with established retailers, the company has aimed to instill confidence in users who may be wary of crypto's reputation as a Wild West.
"We establish trust through the physical presence of a kiosk," says Bergquist. "We literally had customers in the early days say, 'Well, I know you're not going to steal my money, because then I'm going to steal your machine.'"
The company has made significant strides in expanding its reach since those early days, with Bergquist claiming that "there is a Coinme location located within roughly 5 miles for 90% of the American population." This extensive network puts Coinme in a unique position to serve as an on-ramp for crypto adoption.
Simplifying Wallets and Keys
However, creating a seamless user experience goes beyond just providing physical access points. Bergquist highlighted one of the most intimidating aspects of cryptocurrency for newcomers: managing private keys and wallet addresses.
"Anyone who has ever sent bitcoin or digital currency on-chain, I think, can agree that it's scary," Bergquist says. "You're entering in a 16-character alphanumeric phrase. You're copying and pasting it into a little box and then you're clicking confirm. And once you click confirm, there's no going back."
To address this issue, Coinme has integrated wallet functionality directly into its platform. "When you create an account with Coinme, you're also creating a wallet," Bergquist explains. "And so, when you put cash in the machine to buy bitcoin, we just deposit it into your Coinme wallet. You don't even need to know what your wallet address is, and we handle that complexity, so it feels more like a bank deposit experience."
This approach stands in contrast to many other crypto ATMs, which require users to have a preexisting wallet and often involve scanning QR codes—a process that can be confusing for the uninitiated. Bergquist sees this streamlined experience as a key differentiator for Coinme in the market.
Regulatory Uncertainty
Despite these efforts to simplify the user experience, cryptocurrency still faces hurdles to widespread adoption. Regulatory uncertainty remains a major challenge, with Bergquist noting that many potential business partners are in a "wait-and-see mode from a federal regulation perspective."
The volatile nature of cryptocurrency prices also continues to be a concern for many potential users. Bergquist acknowledges this issue but argues that looking at longer-term trends provides a different perspective. "If you look back, yes, it goes up and down, but when it goes into a down cycle, into a trough, its low is always higher than its previous low," he explains.
Bergquist also pushed back against the notion that crypto is primarily used for illicit activities, a perception that dogged the industry in its early days but has since fallen off. "Coinme is a licensed and regulated financial institution, just like the other financial institutions you know and trust," he says. "We do KYC [Know Your Customer]. There's no anonymity. We do anti-money laundering, so we have controls and transaction monitoring in place."
In fact, Bergquist argues that the transparency of blockchain technology can actually be an asset in tracking financial flows.
Future Upside
Bergquist sees significant potential for cryptocurrency to address pain points in the existing financial system, particularly in the realm of payments and cross-border remittances.
"There's $50 billion a year of cash that's sent from the United States to Latin America, and that's cash to cash, which is surprising," he notes. "Well, now you can put that cash into a Coinme location, get crypto and send that anywhere faster and cheaper than a lot of existing solutions."
The company is also exploring opportunities in the B2B space, offering crypto as a service to enable existing financial institutions to incorporate digital assets into their offerings. This move could potentially accelerate adoption by allowing users to access crypto through platforms they already trust and use.
However, Bergquist acknowledges that there's still a long way to go in terms of educating the public about cryptocurrency and its potential uses. Coinme has launched initiatives like cryptoliteracy.org to address this knowledge gap, but survey results indicate that many Americans still struggle with basic crypto concepts.
"We have a basic crypto literacy test and a lot of people can't pass it," Bergquist says. This lack of understanding remains a significant barrier to adoption and highlights the need for continued efforts to demystify the technology for the average consumer.
The road to mainstream crypto adoption may be longer and more winding than early enthusiasts anticipated, but Coinme is working to pave the way, one intuitive interface at a time.
As Bergquist puts it, "Ideas are easy; execution is very difficult." In the coming years, the success of companies like Coinme may well determine whether cryptocurrency remains a niche interest or truly becomes a part of everyday financial life for the average consumer.
