The Hawala system, which I had not heard of by the name, seems identical to the system of letters of credit that prevailed before the evolution of formal paymen

The Hawala system, which I had not heard of by the name, seems identical to the system of letters of credit that prevailed before the evolution of formal payment networks. In the Hawala case the password replaces the physical letter from one trusted agent to another, but otherwise it seems identical. This sort of system was the historical precursor to banking as we know it today.