Eric Trump Warns Banks Face Extinction If They Fail to Adapt to the Cryptocurrency Industry

American businessman and the U.S. president Donald Trump’s second son, Eric Trump, recently warned that banks face extinction within the next decade if they fail to adapt to the cryptocurrency industry.

Speaking with CNBC’s Dan Murphy, Trump stated that the current financial system is “broken, slow, expensive, and favors the ultra-wealthy.” These banking flaws drove him toward the crypto world, he noted.

Trump’s sharpest criticism was directed at SWIFT, the global cross-border payment messaging system. He cited SWIFT’s inefficiencies and high costs, calling it “an absolute disaster.” In contrast, he highlighted blockchain-based alternatives, offering wallet-to-wallet transfers without fees or intermediaries.

He further pointed out that decentralized finance (DeFi) platforms are already demonstrating superiority to the dated infrastructure banks rely on.

Trump Media’s Crypto Adoption

Meanwhile, the Trump family’s ventures are already planning to integrate crypto more deeply into their platforms. Trump Media and Technology Group (TMTG) is aiming to embed a crypto wallet and token into its upcoming video streaming service, Truth+.

TMTG recently partnered with Crypto.com and Yorkville America Digital to develop ETFs that blend cryptocurrencies and American-focused stocks. These ETFs are set to debut on the financial services platform, Truth.Fi.

Back in January, the company decided to allocate up to $250 million of its reserves into digital assets like Bitcoin and other crypto-related securities.

These moves come as many global banking institutions remain hesitant to engage with crypto assets, leading several crypto industry experts to accuse traditional banks of discriminatory "debanking." This involves them shutting down crypto-related accounts without justification.

Last year, popular crypto exchange Coinbase revealed that it had found over "20 examples of the FDIC telling banks to ‘pause’ or ‘refrain from providing’ or ‘not proceed’ with offering crypto-banking services."

So far we've uncovered more than 20 examples of the FDIC telling banks to “pause” or “refrain from providing” or ‘not proceed’ with offering crypto-banking services. The public deserves transparency, not an agency that’s working behind a bureaucratic curtain. 2/3— paulgrewal.eth (@iampaulgrewal) November 1, 2024

Under Donald Trump’s presidency, there has been a push to soften regulatory hostility toward crypto firms. Earlier this year, the Senate Banking Committee, led by Senator Tim Scott, pledged to eliminate unfair debanking policies, calling them "un-American."

A crypto journalist with over 5 years of experience in the industry, Parth has worked with major media outlets in the crypto and finance world, gathering experience and expertise in the space after surviving bear and bull markets over the years. Parth is also an author of 4 self-published books.