Banks facing oblivion within a decade due to the emergence of blockchain, asserts Eric Trump.
Rewritten Article:
Eric Trump Warns Traditional Banks: Embrace Change or Face Extinction
In an informal chat with CNBC, Eric Trump, the exec VP of the Trump Organization and son of the current U.S. President, Donald Trump, has issued a straight-talkin' warning to the conventional financial institutions. Conductin' the interview in Dubai, ol' Eric dropped some hard truths about the traditional banking system and claimed it's sluggish, costly, and favors the rich.
According to Eric, these imperfections make the global banking system ripe for disruption through blockchain and decentralized finance (DeFi). He shed light on blockchain technology, explainin' that traditional banks gotta evolve and adapt to the tech's avant-garde transformation or risk goin' the way of the dinosaur. "The current financial system is busted, it's slow, it's expensive," he added, before warnin' banks they're in danger of becoming extinct in about a decade if they don't start payin' attention.
Blockchain vs. SWIFT: The Battleground
Eric also took aim at SWIFT, the global network used for international payments, callin' it "a disaster in the making." He argued that a blockchain-based system can perform better than these; all functions are faster, cheaper, and more secure. "There ain't nothin' that can be done on blockchain that can't be done better than the current financial institutions," said Eric. He also pointed out how DeFi applications enable peer-to-peer transactions without intermediaries like banks, eliminatin' the high cost and waitin' time. "You can send money instantly, wallet to wallet, without fees or hiccups," he noted.
A Personal Memoir on Cryptocurrency
Eric's interest in the cryptocurrency world wasn't born out of fascination but disillusionment with the banking system. He says the system has become "rigged" against ordinary people, especially those without massive accounts or supporters of the "Make America Great Again" movement. The Trump family's involvement in digital assets goes beyond mere commentary; Eric Trump and Donald Trump Jr. co-founded a crypto platform called World Liberty Financial, partnerin' with real estate billionaire Steve Witkoff, who now serves as a White House Middle East envoy.
The platform recently announced plans to launch a U.S. dollar-backed stablecoin. Eric also joined efforts with the co-founder of America Bitcoin, a mining venture collaborated with Asher Genoot, CEO of Hut 8, in March 2025. These moves indicate a long-term commitment from the Trump family in establishin' infrastructure in the crypto space. Both Donald and Melania Trump have also launched their own digital assets called TRUMP coin and MELANIA coin, further deepenin' their roots in the world of crypto.
The UAE: A Crypto Haven in the Desert
Eric made his remarks during a visit to the United Arab Emirates, a country that's quickly earnin' a reputation as a global leader in the regulation and adoption of cryptocurrencies. Dubai, in particular, has drawn a host of leading crypto exchanges, entrepreneurs, and institutional investors due to its supportive government policies. Eric praised the UAE's pro-business climate and observed its growing importance to both American businesses and the future of finance.
Some argue that crypto remains volatile and unregulated, but Eric is confident that adoption is inevitable. "Governments and institutions will have no choice but to get involved or be left behind," he declared, while also acknowledgin' that some central banks, such as the Bank of Italy, remain skeptical of crypto and stablecoins. However, major financial institutions like JP Morgan and Goldman Sachs have begun integratin' blockchain into their operations.
Enrichment Data:
Traditional financial institutions are recognizing blockchain and DeFi's transformative potential, with some actively experimenting with integrations. Examples include Société Générale borrowing stablecoins from MakerDAO using tokenized bonds as collateral, demonstrating how banks might access decentralized liquidity[5]. Additionally, regulatory adaptation is apparent in recent changes, such as the repeal of SAB 121, which reduced accounting burdens for banks handling crypto assets, suggesting a shift toward accommodating blockchain-based financial instruments[4]. Banks are negotiating DeFi's rise through hybrid models rather than outright resistance, aiming tomerge DeFi's efficiency (e.g., instant settlements, smart contracts) with existing regulatory frameworks[4]. While Goldman Sachs and JP Morgan are not explicitly mentioned, the trend suggests cautious experimentation alongside regulatory advocacy to minimize disruption risks[3][4][5]. Eric Trump's warnings about banking obsolescence mirror DeFi advocates' views, but current banking strategies prioritize coexistence via technological and regulatory adaptation[1][4]. Clearer regulations, such as the EU's MiCA framework, are expected to accelerate institutional adoption by addressing compliance barriers, while banking supervisors shift from hostility to structured integration efforts[4].
- Eric Trump, in an interview with CNBC, warned conventional financial institutions to evolve or face extinction, citing blockchain and decentralized finance (DeFi) as potential disruptors.
- Trump suggested that blockchain technology can perform faster, cheaper, and more secure functions compared to the current banking system.
- He criticized international payment network SWIFT, calling it a "disaster in the making."
- Trump's interest in cryptocurrency was born out of disillusionment with the banking system, as he sees it as rigged against ordinary people.
- Trump and his family have ventured into the crypto sphere, co-founding a crypto platform called World Liberty Financial and launching TRUMP and MELANIA coins.
- The UAE, with its supportive government policies, is rapidly becoming a global leader in cryptocurrency regulation and adoption.
- Eric praised the UAE's pro-business climate and growing importance to both American businesses and the future of finance.
- Despite some central banks' skepticism, major financial institutions like JP Morgan and Goldman Sachs have begun integrating blockchain into their operations, signaling a trend of cautious experimentation with DeFi.
