In Brief:
- Eric Trump says the modern financial system is slow and expensive
- The younger Trump has often advocated for digital currencies as noteworthy alternatives to fiat money
Eric Trump, the executive vice president of The Trump Organization, has called on modern banks to adopt cryptocurrencies or risk going extinct over the next decade. He made the advocacy during one of his numerous recent visits to Dubai, a fast-rising global hub for digital assets.
Eric Trump offers crypto to a “slow and inefficient” traditional banking system
“The modern financial system is broken, it’s slow, it’s expensive,” Eric said during an interview with CNBC on Dubai’s emergence as a crypto hub. “There’s nothing that can be done on blockchain that can’t be done better than how the current financial institutions are working. SWIFT is an absolute disaster,” he added, referencing the global cross-border messaging network for money transfers.
The second son and third child of US President Donald Trump also described the conventional banking system as being “slow,” “inefficient,” and “antiquated.” Instead, he proffers crypto adoption as a viable alternative solution in the banking system.
“And what actually got me into [cryptocurrency] is the fact that I realized our banking system was weaponized against the vast majority of people in our country, either the people that don’t have the zeros on their balance sheet or people who might have worn that red hat that said, ‘Make America Great Again.'”
Beyond describing the traditional banking system as biased in favor of the “ultra-wealthy,” he asserts that crypto is a must-have if modern banks must survive the next decade. “And I’m telling you, if the banks don’t watch what’s coming, they’re going to be extinct in 10 years.”
How true could Eric Trump be?
Conventional banks globally are already making attempts to navigate the rapidly growing digital assets industry, which could add some credibility to Eric Trump’s claims. Unlike traditional financial systems, decentralized finance (DeFi) allows operators to facilitate peer-to-peer transactions with low or zero transaction account and processing fees.
Critics of the nascent asset class are wary of its lack of regulatory clarity, security vulnerabilities, volatility, and restricted consumer protection provisions. However, with President Trump’s administration’s heavy involvement in the asset class, there is a high chance that many criticisms surrounding the industry may find sustainable solutions.
Financial giants like JP Morgan and Goldman Sachs have already launched their blockchain networks and crypto trading desks in line with the global crypto trend. Should Bitcoin’s price keep rising sporadically as it has been in the past, the next decade may reveal some truth to Eric Trump’s claims.
