What is CeDeFi, and how does it change crypto payments?

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It is impossible not to notice the raging confrontation between traditional and digital financial systems. While the well-established centralized system seeks to maintain control over money circulation, decentralized finance dictates new rules and allows users to remove these ties. But what if we take the best of both worlds and create something devoid of the shortcomings of its predecessors? This is the ultimate goal of CeDeFi.

Key points:

  • CeDeFi is a unique structure that merges the benefits of CeFi and DeFi.

What is CeDeFi?

Until recently, there were only two structures in the financial world: centralized and decentralized. CeFi is a traditional financial system that includes several central authorities, institutions, and intermediaries, which DeFi seeks to eliminate with the help of smart contracts and blockchain technology. It is obvious from the name that CeDeFi is a merger of two opposing financial systems and stands for centralized decentralized finance. CeDeFi combines the advantages of two financial systems: regulated by a single centralized structure (bank, state, and others) and an independent financial ecosystem that provides users with full control over their money. The purpose of CeDeFi is to provide basic DeFi services and products along with the security, cost-effectiveness, and flexibility of CeFi.

Thus, CeDeFi provides users with the entire list of DeFi services, such as cryptocurrency trading, yield farming, lending, staking, and more, while using the advantages of CeFi.

In addition, while DeFi services allow everyone to access financial tools without exception, CeDeFi tends to centralize to increase security and control and therefore comply with the regulations established by local authorities and apply KYC and AML.

What are the advantages and disadvantages of CeDeFi?

As already mentioned, CeDeFi combines the best of both worlds. But what does this merger bring us? Below we will look at what advantages and disadvantages CeDeFi has.


  • As you know, CeFi, due to its well-established position, has better liquidity than DeFi. Thus, thanks to the merger of the two systems, CeDeFi users get access to cost-effective prices and fees, as well as better availability and processing speed.


  • The main disadvantage of CeDeFi is the lack of user trust. Those who sought to get rid of control and move into a free DeFi space believe that CeDeFi is a step back in the evolution of the financial system.

How will CeDeFi change crypto payments?

Having considered everything that CeDeFi is, as well as analyzing all the advantages and disadvantages, we can draw several conclusions about how a hybrid of CeFi and DeFi can change crypto payments:

  • Thanks to CeDeFi, crypto transactions will become more cost-effective, fast, and secure due to the reduction in the number of intermediaries and the use of smart contracts.

How can I accept crypto payments?

With NOWPayments, merchants can accept cost-effective and fast crypto payments in 100+ coins using a suitable integration tool:

  • Plugins for CMS platforms such as WooCommerce, Magento 2, Zencart, OpenCart, and WHMCS allow online store owners to start accepting crypto payments.
  1. Log in to your NOWPayments account or create a new one.
  1. Specify your address and generate an API key.
  1. Click “Create payment link”.
  1. Fill in the form and click “Confirm”.


Whether CeDeFi is a new round of evolution of the financial system or not, time will tell. Nevertheless, this merger allows us to bring the best of both opposing structures into the world of finance.

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