Decentralized finance (DEFI) is loved by many due to its flexible and anonymous nature and is also faced with oppositions and strict regulations from financial institutions, analysts and government of different nations. The DeFi model goes against the current world’s financial market model. It erases most of the challenges today’s financial market have been battling to solve and it does this effortlessly without the control of a single person or institution.
However, DeFi might not excel much if it does not collaborate with CeFi. The CeFi also known as Centralized finance is the opposite of DeFi. In CeFi, which is the current financial model operated by most institutions today, the control of the financial market are in the hands of certain individuals. The CeFi institutions wants to take part in DeFi but it looks impossible and unthinkable when you look at it from the surface, but both CeFi and DeFi can collaborate to accommodate the many needs of the financial institutions in the world.
The DeFi and CeFi coming together will make them stronger as an entity than when they are separate. The advantages of CeFi namely reliability and low rate of liquidity, would cover-up/erase the disadvantages of DeFi which are high liquidity rate and non-reliability.
New CeDeFi crypto exchanges have emerged in support of this. The coming together of both CeFi and DeFi might build or become the foundation of a new financial ecosystem.