What is a local Crypto Wallet?

I know what a hardware wallet is but what is a local wallet? Does it store the BAT in a file that I can put on an external drive and give to other people (in person) as a form on “anonymous” payment? Or is it just kinda like a 2FA only you have to use a file instead of a changing code?

More or less, see Introducing Brave Crypto Wallets @Gamegenorator.

I am still confused, Is it a form on 2FA? Does it allow someone to draw a specified amount of BAT? If I out the local wallet key on a flash drive, can is act as a slightly less secure hardware wallet? I still don’t understand it’s purpose.