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by blueboo
1505 days ago
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The unbanked and the oppressed need Web3. After all, 5% of each transaction of ScamOfTheDayCoin will go to the orphans -- once we upgrade to the new liquidity pool. And do migrate soon or the 100% tax kicks in (your next transaction)!... |
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Hawala is a method of money transfer dating to the 8th century. You give some money to a broker, they take some cut, then communicate to a broker at the other end to give the person you specify the amount you requested be delivered. Then the brokers settle accounts independently in a fashion that suits them. In this way it has the same non-banking cross-border benefits that cryptocurrency does (and for privacy may even be preferable since the transaction doesn't appear on any standardized nor public ledger).
It also ranges in legal status from illegal to highly illegal depending on jurisdiction, as it turns out this is a very convenient way to fund terrorism (because it's proven to work for people who are disconnected from official financial channels). It's also used for perfectly innocent purposes, but because it cannot be monitored due to the peer-to-peer nature of the transactions between brokers and individualized bookkeeping it's banned.
I consider its legal status to be a canary for the status of cryptocurrency's role in cross-border transactions. The bits that are effective will eventually be banned (we've already seen this in practice with the recent conviction of that Ethereum founder who was trying to help North Korea evade sanctions with cryptocurrency) and the bits that are the same as the banking status quo will be allowed, making it effectively no different from the status quo.