DUBAI, United Arab Emirates — Eric Trump has issued a stark warning to financial institutions: adapt or risk extinction.
In an interview with Finance Newso’s Dan Murphy in Dubai, the executive vice president of the Trump Organization criticized the current banking system as “broken,” deeming it both inefficient and costly. His comments came in light of the UAE’s emergence as a prominent cryptocurrency hub.
“There’s nothing that can be done on blockchain that can’t be done better than the current financial institutions,” Eric Trump asserted, referring disparagingly to SWIFT, the global messaging network for financial transactions, as “an absolute disaster.”
He characterized the traditional banking system as “antiquated,” echoing sentiments shared by many within the cryptocurrency community, who also find fault with its sluggishness and lack of innovation.
The younger Trump has been a frequent visitor to the UAE as he oversees expanding Trump-branded real estate ventures within the country and across the Gulf region, coinciding with the area’s rapid growth as a global hub for cryptocurrency.
As a staunch supporter of digital currencies, he expressed ambitious predictions for bitcoin, stating in December that he expected it to rise to $1 million during his appearance at the Bitcoin MENA 2024 conference in Abu Dhabi.
Recent trends in the crypto market have been marked by significant volatility, partly fueled by risk aversion in response to President Trump’s trade tariffs. As of late Tuesday, bitcoin was trading around $95,357.
“Our banking system favors the ultra-wealthy,” Eric Trump claimed, explaining his entry into cryptocurrency. “I realized our banking system was weaponized against the vast majority of people in our country—whether those lacking financial means or individuals who may have been associated with my father’s campaign. This realization pushed me into the crypto realm. If banks do not adapt, they face extinction within the next decade.”
A new era for crypto?
Eric Trump’s critiques of banking institutions come at a time when these entities are grappling with the evolving landscape of cryptocurrency, which is shifting financial dealings away from traditional intermediaries.
Decentralized finance (DeFi) platforms have emerged, facilitating peer-to-peer transactions at little to no cost, a significant departure from the fee structures that traditionally benefit banks.
“You can currently download a DeFi app or any cryptocurrency application and instantly transfer money directly to another wallet without incurring the hefty fees associated with banks,” he asserted.
In response to the burgeoning interest in digital currencies, major financial players such as JP Morgan and Goldman Sachs are establishing blockchain networks and crypto trading platforms.
However, critics warn that the nascent asset class is fraught with risks, citing concerns over a lack of regulation, security vulnerabilities, price instability, and inadequate consumer protections.
The Trump administration has indicated its intention to foster growth within the crypto industry. Both President Trump and First Lady Melania Trump have launched their own meme coins, raising ethical questions regarding potential conflicts of interest. In addition, the Trump family is involved with World Liberty Financial, a cryptocurrency platform co-founded with real estate magnate and current White House Middle East envoy, Steve Witkoff.
Recently, Eric and his brother, Donald Trump Jr., unveiled plans to introduce a stablecoin backed by the U.S. dollar via World Liberty Financial, and in March, they launched a bitcoin mining operation named American Bitcoin, in partnership with Hut 8’s CEO, Asher Genoot.
The UAE continues to attract global investors and startups within the crypto sector, bolstered by welcoming regulations promulgated by the government. Eric Trump and other Trump Organization representatives have praised their rapport with leaders in the Gulf region, regarding it as crucial for growth and pro-business development.
Eric Trump’s remarks come ahead of his father’s scheduled trip to the Gulf from May 13 to 16, which includes stops in the UAE, Saudi Arabia, and Qatar. This visit marks the first time a sitting U.S. president will travel to the Emirates since George W. Bush in 2008.
The journey symbolizes the strong ties the Trump administration has forged with Gulf nations, evident from President Trump’s first overseas visit being to Saudi Arabia during his initial term.
