Battle of the Titans, or just outdated misconception?
This is Anastasiia Pereverzeva, the Social Media and Community Manager at Baanx. Recently, I have been reading some online blogs and stumbled upon an opinion piece about DeFi and CeFi opposition - mainly the idea of replacing traditional payment methods like Visa and Mastercard with Bitcoin, and discovered myself having the same opinion not long ago. Though, now I think differently, thanks to Baanx and its products. However, the old trend of substitution of one payment system with the other is still being discussed and described as opponents on the web, even though it’s not an issue anymore. This is because fintech has evolved so much that there’s no need to “battle” but rather, to “collaborate”.
In this opinion piece, we will be discussing how the general angle of the relationship between CeFi and DeFi has changed, and what late bloomers still think about it.
First of all, I would like to clarify what I mean by saying a “late bloomer.” As virtual assets are gaining popularity around the world, more and more people are looking into them; the ones who are new to the space I am referring to as “late bloomers”. Meanwhile, early bloomers joined in the very beginning, back when cryptocurrency didn’t have the same level of popularity, and now have deep expertise in pushing the whole space further.
Though with an influx of new crypto holders in the industry, there are still such outdated concepts around replacing traditional payment systems with Bitcoin, which is widely spread in crypto communities. Well, I cannot deny that compared with traditional credit cards, Bitcoin transactions offer a great deal of benefits, including higher level of security, faster transaction speeds, anonymity, less paperwork and lower transaction fees. Still, the realm of traditional payment methods has its own advantages cryptocurrency can’t substitute yet. Most notably, its real use-cases, while mainstream crypto adoption is still elusive.
Can these two separate worlds co-exist and merge within one ultimate system, offering on-the-go real-life solutions instead of trying to replace each other on the financial market? Is the time of collaboration and joined advantages coming, substituting the competition where there can be one winner?
This would be a rhetorical question for me if I had not started working in the Baanx team and did not meet its products. Nowadays, I feel deeper expertise in bridging the gap between traditional financial systems and crypto. I can also acknowledge that it is not a myth anymore and there is no “competition” between Defi and CeFi, but deep integration and beneficial coexistence within traditional credit cards powered by mainstream crypto.
I have been working in blockchain for four years and had not held any crypto before joining Baanx. The reason was simple: I believed in this battle and saw only one winner, and so I didn't see any possibility of real-life crypto use. I did not buy BTC when it was priced at 20K back in 2018, thinking it was too expensive; I did not buy it in 2019 when it was 3K, thinking it was a bubble; I did not buy it in 2020, thinking it was too late. I didn’t even buy it in 2021, thinking it was too hard to use in real life. I finally bought it in 2022, and I’m absolutely thrilled. I am so glad to overcome this wrong concept that was embedded in my mind, as well as the hardships of crypto use in daily life. Now I am holding a few crypto assets in my wallets, thanks to Baanx and its partnership products.
Therefore, if you are still hesitating like I did, you should think about traditional payment methods and crypto not as the battle of titans, but fruitful collaborative real-life integration.