Eric Trump, a prominent crypto stakeholder and Donald Trump’s second son, has issued a new warning to traditional financial institutions, particularly banks. 

Eric Slams Current Banking System 

During a recent interview with CNBC’s Dan Murphy in Dubai, Eric warned that banks might go extinct in the next 10 years if they do not change how they operate. He lambasted the traditional banking system, saying it is broken, slow, and expensive. 

Additionally, he took a swipe at SWIFT, the global messaging network for financial institutions, calling it an ‘absolute disaster.’ This vintage financial messaging system sometimes takes days and exorbitant fees to settle transactions across borders. 

In his view, transactions on the blockchain are much better than those conducted in the current traditional banking system. The second son of President Trump also referred to the current banking system as inefficient and slow while stressing that it is outdated. 

Notably, most crypto enthusiasts also share a similar sentiment, with some calling on banks to leverage blockchain to scale their operations. 

Further, Eric criticized the U.S. banking system, saying it favors only the ultra-rich. He added that some people weaponize the system against average income earners and those with different political views, particularly people wearing the ‘Make America Great Again’ hat. According to him, this malicious act forced him to venture into crypto. 

Banks’ Mixed Reactions to DeFi Rise  

Eric’s criticism of the current banking system comes as traditional financial institutions attempt to grapple with the rise of crypto, especially the decentralized finance (DeFi) sector. 

DeFi platforms are giving banks a run for their money by eliminating centralized intermediaries and allowing people to transact with each other directly on the blockchain at a negligible fee. Notably, 

Eric also shared some important features of DeFi in the interview. He stated that anyone can launch a DeFi app and send money instantly to another user’s wallet without variability or high fees. 

In response to the rise of cryptos and DeFi, several banks, such as Goldman Sachs and JPMorgan, have embraced the emerging asset class by setting up their crypto trading desks and blockchain-based payment systems.  

However, most banks have refused to embrace crypto. They believe crypto users face serious risks due to a lack of regulation and security vulnerabilities. 

Growing Support for Crypto 

Eric has been a strong advocate for crypto and has continued to support the emerging asset class. 

Last year, he predicted that Bitcoin would eventually hit $1 million, driven by the asset’s supply cap, resistance to censorship, and absence of intermediaries. 

His family also has a crypto empire, World Liberty Financial, which owns multiple cryptocurrencies, including stablecoins like USDT and USDC, SEI TRX, LINK, AVAX, and MOVE. It also owns a Bitcoin mining company, dubbed American Bitcoin, and a dollar-pegged stablecoin.