Eric Trump warned that traditional banks risk extinction within 10 years unless they adapt to the efficiency and low-cost benefits of blockchain and cryptocurrency, criticizing the slow and expensive nature of systems like SWIFT. warned that traditional banks risk extinction within 10 years unless they adapt to the efficiency and low-cost benefits of blockchain and cryptocurrency, criticizing the slow and expensive nature of systems like SWIFT. Speaking in Dubai, he highlighted the UAE’s rise as a cryptocurrency hub and advocated for decentralized finance (DeFi), which enables instantaneous, fee-free peer-to-peer transactions, as a superior alternative to conventional banking.

Trump accused the banking system of favoring the ultra-wealthy and predicted bitcoin could reach $1 million, urging financial institutions to embrace digital currencies or face obsolescence. Eric Trump, executive vice president of the Trump Organization, has issued a stark warning to traditional banks: adapt to the disruptive force of cryptocurrency and blockchain technology or face obsolescence within a decade. Speaking to CNBC’s Dan Murphy in Dubai on Tuesday, Trump criticized the inefficiencies of the current financial system, calling it slow, expensive, and antiquated.

His remarks, made against the backdrop of the United Arab Emirates’ rise as a global cryptocurrency hub, reflect a growing sentiment among digital currency advocates that decentralized finance (DeFi) is poised to reshape the financial landscape. Trump’s critique targeted the Society for Worldwide Interbank Financial Telecommunication (SWIFT), the global messaging network for international transactions, which he described as an “absolute disaster.” He argued that blockchain technology offers superior solutions for financial transactions, enabling instantaneous, low-cost, peer-to-peer transfers without the need for traditional banking intermediaries. “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,” he said.

This efficiency, he noted, contrasts sharply with the high transaction processing and account fees that have long been a cornerstone of bank revenue. The UAE, where Trump has been a frequent visitor amid the expansion of Trump-branded real estate projects, has emerged as a leader in cryptocurrency adoption. The emirate’s progressive regulatory framework and investment in blockchain infrastructure have attracted global attention, positioning it as a testing ground for financial innovation.

Trump’s comments align with this shift, emphasizing the potential of digital currencies to democratize finance. At the Bitcoin MENA 2024 conference in Abu Dhabi in December, he predicted Bitcoin (BTC) would soar to $1 million, underscoring his bullish outlook on the asset class. Beyond technological critiques, Trump framed his advocacy for cryptocurrency as a response to systemic inequities in traditional banking.

He accused the system of favoring the ultra-wealthy and being “weaponized” against everyday Americans, particularly those without substantial wealth or those associated with political movements like “Make America Great Again.” This perspective, he explained, drove his engagement with the crypto world, which he sees as a counterforce to centralized financial control. DeFi platforms, by enabling direct transactions with competitive or zero fees, challenge the dominance of banks and offer users greater financial autonomy. The banking sector, meanwhile, is grappling with the rise of digital currencies.

Major institutions like JP Morgan (JPM) and Goldman Sachs (GS) have responded by launching blockchain networks and crypto trading desks to capture a share of the growing market. These moves signal an acknowledgment of cryptocurrency’s staying power, but Trump warned that incremental adaptations may not suffice. “If the banks don’t watch what’s coming, they’re going to be extinct in 10 years,” he said, emphasizing the existential threat posed by decentralized finance.

The broader implications of Trump’s stance resonate globally as cryptocurrencies gain traction. Blockchain’s ability to streamline cross-border payments, reduce costs, and enhance transparency has drawn interest from governments, corporations, and individual investors alike. However, challenges such as regulatory uncertainty, security concerns, and market volatility remain hurdles to mainstream adoption.

Despite these, the momentum behind digital currencies continues to build, with regions like the UAE leading the charge. Trump’s vision of a blockchain-driven financial future is not without precedent. The rapid growth of DeFi platforms, which facilitate lending, borrowing, and trading without intermediaries, has already disrupted traditional banking models.

By leveraging smart contracts and distributed ledgers, these platforms offer users unprecedented control over their assets. For consumers frustrated by high fees and slow transaction times, the appeal of such systems is clear. As the cryptocurrency industry evolves, the pressure on banks to innovate intensifies.

While some institutions are embracing blockchain, others remain cautious, wary of what they perceive as risks associated with a decentralized paradigm. Trump’s warning serves as a call to action, urging the financial sector to rethink its role in an increasingly digital economy. Whether banks can adapt swiftly enough to avoid the fate he predicts remains an open question, but the trajectory of cryptocurrency suggests that the time for complacency has passed.

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