Eric Trump Warns Banks: Embrace Crypto or Face Extinction

Eric Trump warns that banks may disappear in ten years unless they adopt cryptocurrency. He criticises SWIFT for being outdated and highlights the advantages of blockchain technology and DeFi alternatives. Meanwhile, Trump Media plans to integrate crypto into its platforms, while traditional banks face accusations of unfairly debanking crypto firms amid growing adoption of digital assets.

In a striking warning, Eric Trump suggested that banks could face extinction within a decade if they don’t embrace cryptocurrency. Speaking with CNBC’s Dan Murphy, he highlighted flaws in the traditional banking system, calling it “broken, slow, expensive, and favourable to the ultra-wealthy.” This harsh critique reflects a growing sentiment in the finance world, as Trump positions himself strongly in favour of the crypto sector.

Trump did not hold back when discussing SWIFT, the global messaging system for cross-border payments. He labelled it “an absolute disaster,” drawing attention to its inefficiencies and high transaction costs. The businessman pointed to blockchain technology, emphasising that wallet-to-wallet transfers can happen without fees or intermediaries, thus making Decentralised Finance (DeFi) platforms a powerful alternative to traditional banking.

As the cryptocurrency landscape evolves, the Trump family is pushing to embed crypto into their business ventures. Reports indicate that Trump Media and Technology Group (TMTG) is planning to integrate a crypto wallet and token into its forthcoming video streaming platform, Truth+. Moreover, they have partnered with Crypto.com and Yorkville America Digital to introduce ETFs that blend cryptocurrencies with American equities on the platform, Truth.Fi.

Earlier this year, TMTG allocated up to $250 million in its reserves towards digital assets, including Bitcoin. This bold move illustrates the family’s commitment to crypto, intending to ride the wave of digital currency’s rise.

Despite the ongoing expansion into crypto, many traditional banks remain reluctant to engage with digital assets. Critics, including numerous crypto experts, have accused these institutions of unwarranted debanking, shutting down accounts tied to crypto without clear reasoning. In fact, Coinbase reported over 20 instances where the FDIC advised banks to pause or withdraw from providing crypto-banking services.

This attitude towards debanking has been under scrutiny. There’s been bipartisan discussion, influenced by Donald Trump’s past administration, aimed at easing regulations that unfavourably affect crypto operations. The Senate Banking Committee, led by Senator Tim Scott, has vowed to eliminate these debanking practices, labelling them “un-American.”

It’s clear that the future of banking could heavily depend on its ability to adapt to the evolving landscape of cryptocurrency. Experts and advocates believe that without a shift toward modern, tech-enabled finance, traditional banks may find themselves increasingly irrelevant.

This article serves to inform but is not financial advice. Market conditions can fluctuate quickly, and verification of the information is recommended before making any financial decisions.

Parth, a crypto journalist with over five years in the field, possesses a solid background in the industry, having survived both bear and bull markets while contributing to major media outlets focused on finance and cryptocurrency.