Russian President Vladimir Putin said that the current system of international payments is controlled by a “narrow club of states and financial groups.” He proposed to create a new system that would be independent of banks and the intervention of third countries. The president cited hawala as an example of such a system.
“Based on the technologies of digital currencies and distributed registries, it is possible to create a new system of international payments, and much more convenient, but at the same time completely safe for participants and, importantly, independent of banks and third-party interference,” the president explained during a conference on artificial intelligence “Journey into the world of artificial intelligence” (quote from site Kremlin).
Hawala – an informal system of financial settlements – was common in the Near and Middle East even before the advent of the modern banking system. Transfer of funds is carried out by one-time notifications by e-mail, fax or phone calls. Funds move from country to country without accompanying financial documents, so they cannot be tracked by government agencies.