The Future of Payments with DeFI: Can It Be A Reality?

Nagaya Technologies
6 min readMay 18, 2024


The 21st Century brings around one of the most transformative inventions in our lifetime with the introduction of the internet at the beginning of the millennium to the current rise of Blockchain Technology. These inventions sparked massive evolution in the way we operate in our daily lives including our Payment System. So let us go through the history behind our payment system and examine its possible future with the rise of DeFI.

Digitalisation vs Decentralization

For Hundreds of years the idea behind our current payment system has evolved from the original concept of Barter. Barter introduced all of us with the idea that we need to give up something we have for something we want with values agreed subjectively. The massive confusion of values set by the Barter System was then moved forward to a standardized method of exchange to facilitate easier transactions across the global network.


From Gold and Commodities being used as a method of exchange to our current method with Fiat Currency, our payment system continues to evolve. Fiat Currency was obviously introduced during the 20th Century as civilization started to normalize itself post the World War but it too carried some drawbacks on its progression. Fiat Currency due to its physical form are easily lost, torn or even stolen which may cause harm in the long run.

These issues were swiftly resolved during the dawn of a new century as the Internet became the hottest invention every institution would like to be involved in. The Internet was meant to be medium to facilitate the exchange of information with Netscape and Amazon amongst its early adopters but it will soon become the bedrock of a New Digitized Payment System as Banks and Financial Institutions aim to reach the yet Unbanked Population.

As Cash slowly turned into Debit and Credit Cards, our payment system began its first evolution towards the digital world. The breakthrough innovation came in 1994 when a company called First Virtual Holdings introduced the first online payment system that made use of these Cards to make transactions. This invention was then expanded by Amazon and Paypal which enabled users to make online payments without providing merchants with their credit card information.

These inventions not only expanded the E — Commerce world but brought about new innovation into the online payment system such as Mobile Banking and Direct Debits. This further expands the financial inclusion to the world with more than 90% having access to digital payment platform while the size of the global digital payments market reached $89 billion in 2022 and is projected to reach $200 billion by the end of 2030,

Digitalization continues to run its course into every aspect of our payment system with Near Field Communication (NFC) being the latest breakthrough. This NFC tool has paved the way to the rise of Digital Wallets such as Google Pay, Apple Pay and many more which made payments much easier in online e — commerce platforms. If Digital Wallets isn’t for your then payments via Bank Transfer has also never been easier with the introduction of Virtual Account and QR Codes.

With many options currently available as our online payment system, it is simply impossible to think that another major breakthrough would arrive but it did in 2008. The 2008 Financial crash was devastating for so many people but an opportunity for a man named Satoshi Nakamoto who brought Bitcoin to live for all of us. Bitcoin may not be seen as a rival to our digital payment system but its growing prominence seems to show its potential.

The Blockchain Technology that is behind the wonders of Bitcoin have introduced the concept of Decentralization which might seem skeptical during the early 2010s. Over the years not only that the concept behind the Bitcoin Network works perfectly but its growth also inspired the creation of the DeFI Space as what we know today. Decentralization builds upon the benefit of Digitalization by adding the layer of transparency and security for all its users.

Bitcoin and other Digital assets might be seen as just an asset but its primary function still remains the same which is to be a much more efficient Payment System than our Traditional Method. The proof of concept can be seen in the Stablecoin space which has grown more than 5 times since the introduction of Tether USD (USDT) in 2014. The Decentralized Network behind USDT enables Stablecoin to make cross border payments in a matter of minutes.

While it is understood that stability in value is needed for an efficient global online payment system, the Decentralized Network has the ability to be the next breakthrough in our journey to the Digital World. If adopted and utilized correctly, the Blockchain Technology can be the greatest invention we have seen in the 20th Century surpassing the internet and building a global digital payment system where transactions are achieved in minutes might not be an imagination after all.

Slow and Steady progress…

Decentralization is a concept that is powerful but usually undermined due to the bad reputation of how it was utilized. It is obviously unfortunate that the revolutionary blockchain technology that had the capability to create the DeFI Space was instead used to create worthless meme coins and NFTs. Despite all this, Blockchain Investments continue to ramp up amongst Financial Institutions as the adoption race continues to heat up.

Visa and Mastercard continue to show keen interest with the adoption of Blockchain Network into its current payment system while Softbank continues to invest in innovations within the DeFI Space. The rise of Neobanks such as Chime and NuBank continues to be a huge factor in revolutionizing the Traditional Financial System. BitPay and Stripe are also huge names that are spearheading the adoption of Digital Asset as an online payment system

This rise of Digital Asset as a Payment System was also thanks to El Salvador which pushes the envelope of Bitcoin’s capabilities as a method of transaction but obviously its a slow progress to get there 3 years since the announcement. Evolution obviously takes time to build and get adjusted upon while we may still be on the brink of the shift on our payment system. Digitalization will continue its path forward while Decentralization may still be a few steps away.

A positive note to be taken for all users is the growth in the adoption of the Decentralization concept with its swift progression. The keenness and enthusiasm behind the concept continues to be a discussed topic amongst world leaders as its a boost towards its capabilities. What is important is to not only continue the progress that is already being made but also ensure that the technology is utilized in the right sustainable way. The Decentralization of our payment system will not only connect the global community but also bring about innovations that would be valuable in our daily lives!

We from the Nagaya Technologies Pte. Ltd are proud of the continuous development within the DeFI Space. We believe in the enormous potential that DeFI can bring while sustainability remains an important factor in the development of Nagaya. Nagaya becoming the World’s First Hybrid Digital Asset continues our commitment to expand real-life adoption of Blockchain Technology. Intrigued to know more about Nagaya, you can visit us at

Or you can obtain your Nagaya now through the Latoken Platform at



Nagaya Technologies

NAGAYA (NGY) is a Gold-Backed Cryptocurrency with Subsidiary Projects. We aim to build Trust and Value through LEGALITY and TRANSPARENCY.