Hawala: The Money System That Runs on Trust, Not Banks | IQ Index

Описание: Somalia has almost no formal banking system yet it moves more remittance money per capita than most countries move through banks. This episode breaks down hawala: the trust-based transfer network that's kept the economy running for three decades with no central bank behind it. Professor Paul Vaaler joins IQ Index to unpack how a hawaladar settles cross-border accounts with no wire transfer, why reputation functions as collateral in a system with no legal enforcement, and what happens when regulators try to formalize it. Is hawala a workaround or a genuine alternative to formal finance?

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