TradFi or Traditional Finance or CeFi or Centralized Finance is retail banking under regulations a.k.a. [U.S. Code: Title 31](https://en.wikipedia.org/wiki/Title_31_of_the_United_States_Code#:~:text=Title 31 of the United States Code outlines the role,in the United States Code.): Money and Finance.
Prior to cryptocurrency, there was a shadow banking system. They were unregulated and without government involvement at all.
https://www.youtube.com/watch?v=v3rfgkTAlho
The problem of the shadow banking system was lack of transparency, highly over-leveraged, and lack of access to formal liquidity (source).
During the 19th century, there were none of a few regulated banks but fewer people were able to access the bank rather than in the 20th century when there were regulated banks and few unregulated banks since the majority of people nowadays have access to banks.
The problem of the “TOO BIG TO FAIL” doctrine is pursued under the Federal Reserve mission to prevent financial collapse.
Yet, the 2008 financial crisis marked the unprecedented the beginning of monetary accommodation through “quantitative easing” or printing more money. (further reading here)
https://www.youtube.com/watch?v=QozGSS7QY_U
Since then, printing money is a solution to the financial crisis (source).
https://fred.stlouisfed.org/graph/graph-landing.php?g=LDnm&width=670&height=475
So, some unknown person named Satoshi Nakamoto proposed a solution as a new open-source P2P e-cash system called Bitcoin on February 11, 2009, at 22:27.
And he highlighted that
The root problem with conventional currency is all the trust that's required to make it work. The central bank must be trusted not to debase the currency, but the history of fiat currencies is full of breaches of that trust. Banks must be trusted to hold our money and transfer it electronically, but they lend it out in waves of credit bubbles with barely a fraction in reserve. We have to trust them with our privacy, trust them not to let identity thieves drain our accounts. Their massive overhead costs make micropayments impossible.
The rest is just history.
Brief Overview of CeFi Problems - The History of Decentralized Finance | Coursera
5 problems: