PayFi vs DeFi: Understanding the Difference
At the recent #PayFiSummit, Cali Liu, President of the Solana Foundation, clarified the distinction between PayFi and DeFi. The term PayFi, coined by Liu, represents a new paradigm in financial technology.
- PayFi focuses on everyday payment solutions
- DeFi primarily deals with broader financial services
Edwin Aoki, CTO of Blockchain, Crypto & Digital Currencies at PayPal, highlighted the outdated nature of current value transfer systems. He emphasized how PYUSD and Solana are poised to revolutionize payments through:
- Instant transfers
- Low transaction costs
- Enhanced transparency
These innovations aim to modernize the 50-year-old financial infrastructure currently in use.