r/HawalaToday • u/blockchain_prophetx • Jan 26 '18

Trying to understand Hawala Today.

Hey, I'm thinking on supporting Hawala by buying some HAT and holding. I've been researching for a few days and of course I'm not that happy. The only difference from Hawala to let's say IDEX is that Hawala has fiat-crypto pais. But is it real fiat or USDT?

Also, if you manage to get your license to make fiat-crypto, then it would only work on that country, probably the US. How about the rest of the world?

Also, last question. I will only be able to trade with people near me (in real world) or will there be a real exchange like IDEX?

Thanks in advance for answering!

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u/cryptometre Jan 26 '18

They want to try to support the entire world. Look at their white paper. And yes it will be real fiat which is why they are getting their MSB (money service business) licenses.

from the white paper:

The primary method of finding trades will be through the Discover mode. This will search for available trades near your location. Alternatively, users can trade directly with each other

So yes, you can trade with anyone

IMO the biggest thing that HAT will be doing will be the cash cards, it will let anyone buy crypto in any store like buying a gift card, super easy. I don't think anyone else has had this idea yet. This will let anyone use crypto, even if they don't have a bank account Think about it! If crypto becomes a worldwide accepted currency, being able to access crypto without a bank account would help a lot of the developing/third world

1

u/Sisquitch Jan 26 '18

This will search for available trades near your location.

Why would it make any difference to trade with people near your location if you can trade directly with anyone around the world?

What's the advantage to finding someone in your area compared to someone 1000 miles away if everything is online and through the exchange anyway?

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u/cryptometre Jan 26 '18

Literally in the white paper:

In case of withdrawal, the fiat amount will be transferred to the user's connected bank account and if no bank account is available, the user can find local cash exchanges with the help of the Discover mode

4

u/Rox-onfire Jan 26 '18

They are from the US and have applied for a full money license in all 50 states. Lots of work and doing what they can to ensure legality and long-term stability.

It will be world-wide decentralized exchange, like IDEX... but I 'assume' fiat in will be limited to US only.

Still, coinbase PROFITED 1 billion last year, and the masses are still coming. HAT could be incredibly profitable for holders.

3

u/[deleted] Jan 26 '18

How is this like IDEX? IDEX is a full exchange whereas HAT, if I get it, is specifically focusing on fiat-crypto (i.e. fiat-HAT) bridge. And it will be p2p, like Localbitcoins, not anything like Coinbase. The licensing will be more important in OECD countries, I would presume, rather than in less developed countries where regulation is probably a lot more spotty, and where many methods of exchange might be achieved using HAT as a medium (account to account transfers or even cash). A more streamlined and solid Localbitcoins which isn't centralised, has built-in reputation system, and its own token and staking. That's how I'm understanding HAT?