Eric Trump warns banks that they must adapt or face extinction within ten years. He criticises the current banking system as outdated and slow, advocating for blockchain and cryptocurrencies as the future of finance. His views come as the UAE establishes itself as a major cryptocurrency hub, coinciding with his family’s increasing involvement in the crypto market.
Eric Trump has fired a warning shot across the bow of traditional banks, stating that unless they evolve, they risk fading into irrelevance within a decade. Speaking to CNBC’s Dan Murphy in Dubai, the executive vice president of the Trump Organization labelled the current financial system as ‘broken’ — slow and costly. He believes blockchain technology can outperform traditional financial systems, specifically criticising SWIFT, the global messaging network for transactions, calling it a real mess.
During his remarks, Eric Trump underscored how many critics share his view that banking processes are outdated. For him, the pressure to innovate comes from the rapid rise of cryptocurrencies, especially in the UAE, which has been positioning itself as a global cryptocurrency centre. Over recent years, he’s visited the region often, coinciding with the expansion of Trump-branded real estate ventures there.
A firm believer in digital currencies, Eric Trump had previously predicted that Bitcoin could reach a staggering $1 million mark during the Bitcoin MENA 2024 conference in Abu Dhabi last December. The cryptocurrency market has experienced sharp fluctuations lately, particularly amid a broader sell-off of risky assets influenced by President Trump’s global trade tariffs. As of late Tuesday, Bitcoin was valued around $95,357.
Eric Trump pointed out that the banking system is skewed in favour of the wealthy, which forced his hand into exploring cryptocurrency. He stated, “Our banking system is weaponized against the vast majority of people… if banks don’t see what’s coming, they’ll be extinct in 10 years.” In essence, he argues that cryptocurrency offers essential opportunities for those typically disadvantaged by conventional banks.
His comments arise in an era when the banking sector is grappling with the emergence of decentralized finance (DeFi), a model that cuts out traditional intermediaries like banks entirely. DeFi platforms are designed to provide peer-to-peer transactions, often with little to no fees, challenging the traditional revenue models of banks. “With DeFi, you can send money instantly, wallet to wallet, without the hefty fees,” Eric Trump explained.
In a bid to adapt, several major financial institutions, such as JP Morgan and Goldman Sachs, have begun setting up blockchain initiatives and crypto trading arms to keep pace with the shifting landscape. However, there are plenty of sceptics. Concerns about regulation, security flaws, and the inherent volatility of cryptocurrencies mean that many think caution is warranted for potential investors.
The Trump family continues to push into the cryptocurrency world. The Trump administration has declared an intention to nurture growth in the crypto sector. Both Donald Trump and Melania Trump have introduced their own meme coins, raising eyebrows about possible conflicts of interest. Concurrently, Eric Trump and his brother Donald Trump Jr. are looking to launch a U.S. dollar-backed stablecoin via their crypto platform, World Liberty Financial, and recently established a new Bitcoin mining firm called American Bitcoin.
As for the UAE, it remains an attractive destination for crypto investors, bolstered by business-friendly regulations that have spurred growth in the industry. Eric Trump and other Trump Organisation members have consistently praised their rapport with leadership in the Gulf, which they see as fruitful markets. In light of his father’s upcoming visit to the region, which includes stops in the UAE, Saudi Arabia, and Qatar from May 13 to 16 — marking the first such visit by a U.S. president since George W. Bush in 2008 — these statements are especially timely.
This trip underscores the longstanding strategic relationships that the Trump administration has fostered with Gulf nations, demonstrated most notably during Trump’s first overseas visit as president, which took him to Saudi Arabia.
