21:33Hawala / Bitcoin / Classic banking: principles and differences
Hawala / Bitcoin / Classic banking: principles and differences
The word "hawala" in Arabic means a bill or parcel. The peculiarity of the hawala system is the fact that all financial transactions (transfer of money, jewelry or gold from the country to the country) are carried out without any documentary evidence - the work is built on the trust of the participants in the process.
Hawala is not the only informal money transfer system. In India, under the same scheme in due time used Hundi, in China, "flying money" and so on.
For all the seeming archaism of Hawala, after asking any seller of small grocery stores in Brooklyn, New York, you can find out that this is how most of them send money to their native Yemen.
Using P2P technology, Bitcoin operates without any supervisory authority or central bank. Electronic payment between the two parties is irreversible - there is no mechanism for canceling a confirmed operation or forcible withdrawal.
Existing exchange exchanges allow the Sender and the Recipient not to interact directly with Bitcoin.
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