Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Eric Trump, executive vice president of the Trump Organization and the younger son of President Donald Trump, criticized the current financial system as outdated and inefficient, suggesting that cryptocurrency offers a faster and more cost-effective alternative. What Happened: Speaking this week in Dubai, he warned that traditional banks could become obsolete within the next decade if they fail to adapt.
In a thorough critique delivered during his visit to the UAE, which is an emerging hub for digital currencies, Trump called SWIFT "an absolute disaster." Trending: Trade crypto futures on Plus500 with up to $200 in bonuses — no wallets, just price speculation and free paper trading to practice different strategies. He said, "there's nothing that can be done on blockchain that can't be done better than the way that the current financial institutions are working," in a conversation with CNBC.
"The modern financial system is broken, it's slow, it's expensive," he said. "If the banks don't watch what's coming, they're going to be extinct in 10 years." He argued that decentralized finance allows for private, low-cost transactions and said that the U.S. banking system "favors the ultra-wealthy" and is politically weaponized.
To establish his point about the increasing irrelevance of banks, Trump said: "You can open up a DeFi 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" of banks. See Also: Grow your IRA or 401(k) with Crypto – unlock the power of alternative investments including a Crypto IRA within your retirement account. Why It Matters: Trump's remarks come at a time when major banks like JP Morgan are creating blockchain platforms and crypto services to keep up with the rapid scale of digital transformation.
His comments also coincide with increasing regulatory scrutiny of crypto markets after notable episodes of volatility and collapses. Meanwhile, the Trump administration has fashioned itself as a champion of digital currencies, and the Trump family is entangled with initiatives such as the World Liberty Financial and American Bitcoin. Eric Trump's comments come just ahead of his father's scheduled trip to the Gulf from May 13 to 16, with stops in the UAE, Saudi Arabia, and Qatar.
The visit will mark the first time a U.S. president has visited the Emirati sheikhdom since George W. Bush in 2008.
