Key Takeaways
- Eric Trump says banks could become extinct in about 10 years if they ignore crypto adoption.
- The traditional banking system has always been criticized for being inefficient and serving the needs of the super-rich.
- Eric Trump claims the role of crypto in the financial system is growing and is already shaping the future of finance.
Eric Trump, the son of US President Donald Trump and vice president of the Trump Organization, has warned traditional banks that they could vanish within the next 10 years without crypto adoption. Eric believes cryptocurrencies are reshaping the future of finance, and any banks that ignore digital assets will fall behind and vanish.
The System Looks Outdated and Inefficient
Speaking during an exclusive interview with CNBC, Eric Trump decried the broken, slow, and expensive modern financial system dominated by traditional banks and their reliance on outdated technologies like SWIFT, which has been in service since 1973. While the banking system still reveres SWIFT as its choice cross-border payment global messaging network, Eric Trump said the system was a complete disaster that often takes days to move money from one country to another. He stated:
“Nothing can be done on blockchain that can’t be done better than how the current financial institutions work. SWIFT is an absolute disaster.”
Cross-border money transfers on SWIFT can take between 1 and 5 days or longer, especially when several banks are involved. Moreover, every individual bank will always add to the delays because of their checks, making the transfers slower, and the result is consistently missing deadlines. Trump claims that such hurdles made the system look outdated and inefficient in today’s digital world, where crypto adoption has taken root.
A Tool of Oppression against the Population
According to Eric Trump, such a slow and outdated pace of moving money was beneficial only to the super-wealthy but not to ordinary folk. The traditional banking system, he said, granted exclusive access to banking services, investment opportunities, and better loan fees to those who already had large monetary assets. For him, crypto adoption was the only way to level the financial playing field.
Calling the traditional banking system a tool of oppression against the population that lacked power and money, Eric Trump added he was convinced that cryptocurrencies are fairer and more effective than centralized systems. He said:
“And what got me into [cryptocurrency] is that I realized our banking system was weaponized against the vast majority of people in our country.”
SWIFT Risks Losing Market Dominance
As cryptocurrencies become mainstream financial systems, Trump claimed that payment systems like SWIFT risk losing their market dominance. He added:
“You can open up a DeFi [decentralized finance] app right now, you can open up any cryptocurrency app, and you can send money, wallet to wallet, instantaneously, without the expense, without the variability.”
Eric Trump added that DeFi facilitated bypassing currency conversion fees and other hidden intermediaries when sending money abroad. Warning the incumbents, he boldly stated:
“If the banks don’t watch what’s coming, they will be extinct in ten years.”
Conclusion
The sentiments expressed by Eric Trump come at a time when an increasingly growing chorus of crypto advocates sees blockchain as a faster, cheaper alternative to conventional clearing houses. While President Donald Trump has recently courted bitcoin advocates, the younger Trump’s remarks go further by predicting obsolescence for institutions that fail to consider crypto adoption.
Frequently Asked Questions
How do banks feel about crypto?
Previously, banks disliked crypto for a few reasons. Firstly, it offered alternatives to its services, which could threaten its market share. Secondly, crypto operates outside traditional regulatory frameworks, creating uncertainty and risk.
How can banks succeed with cryptocurrency?
Traditional finance is slowly adapting to the rise of cryptocurrencies by integrating digital assets into its offerings. Some initially skeptical banks are now merging compliance with innovative crypto services to stay competitive.
What is the effect of cryptocurrencies on the banking system?
Cryptocurrencies can offer faster and cheaper cross-border transactions compared to traditional banking systems. Individuals and businesses could easily transfer funds across borders using cryptocurrencies without intermediaries or exorbitant fees.
