Ancient trust-based networks move billions without banks
A centuries-old ledger system allows billions of dollars to cross borders instantly without ever touching a wire transfer or a traditional bank vault.
Long before the invention of digital banking, merchants in the Middle East developed 'hawala', a parallel financial universe built entirely on personal honor. In this system, a person gives money to an agent in one city, and that agent's partner in another country hands the equivalent cash to the recipient. No money actually moves across the border; the two agents simply track what they owe each other in private ledgers.
There's more to this story — open the app to keep reading.
Continue Reading in App
1 more paragraphs · plus a 2-question quiz