Coinme CEO Neil Bergquist: ‘We’re Seeing More and More Use Cases Around Crypto Payments’
The mainstream adoption of cryptocurrency for everyday transactions is gaining momentum, driven by innovations in payment infrastructure and growing interest from both consumers and businesses. Advocates of the technology underlying these systems, from distributed ledgers to blockchain networks, believe it has the potential to reshape how value moves through the digital economy.
“We’re seeing further evolution of crypto use cases entering various areas for mainstream adoption,” says Neil Bergquist, CEO of crypto exchange and bitcoin ATM specialist Coinme. “And we’re seeing more and more use cases around crypto payments where crypto is being used as a store value and a medium of exchange to buy goods and services.
“People are realizing that crypto has a lot of benefits when used for payments because there’s no chargeback risk and no Visa or Mastercard processing fees. It’s faster and cheaper as a payment rail, especially because it’s digitally native.”
How Crypto Could Change the Payment Ecosystem
The crypto ecosystem differs markedly from traditional payment rails like the Automated Clearing House, cards, and wire transfers. While conventional payments flow through a centralized system with banks acting as intermediaries, crypto transactions rely on decentralized networks where transactions are verified through consensus rather than central authority.
Financial institutions can now serve as a gateway for funds to move in and out of a digital currency network. Still, for funds to enter the mainstream financial services market, they’ll typically be converted from digital currency into fiat currency by an exchange to be deposited electronically.
This hybrid model enables businesses to accept crypto payments while receiving familiar fiat currency. When someone pays with cryptocurrency, the transaction typically converts to dollars at the point of sale.
“The bitcoin is valued at the time of purchasing, converted to dollars and given to the merchant. That’s generally how those flows work,” says Bergquist.
He envisions broader implications for personal finance: “Imagine if you had your investment portfolio, stocks and bonds and gold and bitcoin, and you could just have that be your checking account. Then whenever you bought something, it would just convert the asset into dollars to pay the merchant instead of having to sit on dollars which become worth less over time.”
Blockchain Infrastructure
Modern crypto systems rely on multiple technologies working in concert. Blockchains serve as decentralized databases storing transaction records in sequential blocks, each containing a cryptographic link to the previous block. This creates an unalterable chain of custody for digital assets.
Distributed ledgers enable multiple parties to record transactions simultaneously without requiring a central administrator. While traditional financial databases maintain a single authoritative record with restricted access, distributed systems share data across many nodes that validate transactions through consensus. This architecture helps prevent tampering while maintaining transaction accuracy.
Beyond avoiding card processing fees through this decentralized infrastructure, crypto transactions are irreversible, eliminating chargeback risk. Smart contracts can automate actions like asset transfers and shipping triggers based on payment receipt.
Privacy concerns about distributed systems for these use cases can be addressed through cryptographic techniques. Digital currency ledgers store only public keys rather than personal information. Access to funds requires private keys, which function like passwords but with mathematical properties that make them extremely difficult to compromise.
Crypto Regulation
The regulatory environment for crypto payments continues to develop. The approval of bitcoin exchange-traded funds by the Securities and Exchange Commission earlier this year marked a significant milestone, attracting substantial institutional investment. The industry has also seen increasing bipartisan support in Congress, and the incoming Trump administration campaigned on a crypto-friendly policy agenda.
“It’s not supposed to be a red or blue thing,” Bergquist observes. “There’re a lot of crypto bills that have bipartisan support. The fact that there are crypto bills in Congress is progress, and they’re not about banning crypto. They’re focused on providing guidance to safely allow the industry to grow.”
This push for regulatory guidance comes at a pivotal moment. The SEC’s recent approach under Gary Gensler’s leadership has been criticized for lacking clear direction.
“The biggest issue with Gary Gensler’s leadership was the lack of guidance,” Wolf Financial CEO Gav Blaxberg recently told TheStreet financial website. Many crypto companies have expressed willingness to comply with regulations but struggle without clear rules.
The SEC has generally accepted bitcoin’s status as a nonsecurity, focusing its enforcement actions instead on other cryptocurrencies that could be classified as securities. However, the relationship between regulators and crypto exchanges remains complex. For example, while the U.S. government maintains a custodial relationship with the exchange Coinbase, the SEC has simultaneously pursued legal action against it.
Industry experts anticipate that future regulatory frameworks will align more closely with U.S. strategic interests. Stablecoins, the sixth-largest buyer of U.S. bonds, represent a particular area of focus. These dollar-backed digital currencies could help expand the reach and utility of the U.S. dollar in the global crypto economy.
The Next Generation of Payment Systems
The generational divide in crypto adoption remains striking. Recent data from Bank of America shows that 28% of investors aged 21 to 43 see greater growth potential in crypto and digital assets, compared to just 4% of those 44 and older. This gap suggests potential for increased mainstream acceptance as younger generations gain economic influence.
New forms of digital currency are also emerging. Stablecoins, backed by fiat currencies or commodities, aim to reduce value fluctuation while maintaining crypto’s technical benefits. Central bank digital currencies represent another approach, offering government-issued digital versions of traditional currency that could operate on either centralized or distributed systems.
“Speaking as someone trying as hard as we can to build fast and make those use cases alive today, there’s still a gap between what’s possible and what’s available.” Bergquist acknowledged. Despite these challenges, the infrastructure for crypto payments continues to develop, driven by potential benefits in cost, speed, and functionality.
The key to wider adoption may lie in making the technology more accessible while maintaining the advantages of decentralized systems. Companies like Coinme focus on building bridges between traditional finance and crypto through services like bitcoin ATMs, fiat-to-crypto on-ramps, and B2B solutions. The goal is to help transform crypto from a speculative investment into a practical mainstream payment tool, and this goal continues to move closer to becoming a reality.
