Eric Trump, the executive vice president of the Trump Organization and son of President Donald Trump, has issued a stark warning about the future of traditional banking.
In an interview with CNBC on April 30, Eric Trump suggested that banks may face extinction within the next decade unless they embrace cryptocurrencies. This statement highlights his growing belief in the inevitable rise of crypto and the need for the banking sector to adapt to this new financial paradigm.
Eric Trump Warnings to Banks
Eric Trump’s remarks come amid growing discussions about the role of cryptocurrencies in transforming global finance. According to him, if banks fail to acknowledge and adapt to the growing influence of digital currencies, they risk being left behind. “If the banks don’t watch what’s coming, they’re going to be extinct in 10 years,” Trump stated during the interview.
Trump’s comments shed light on his dissatisfaction with the traditional banking system. He criticized it for being slow, outdated, and overly beneficial to the wealthy. According to Trump, banks today are expensive and often prioritize the needs of the ultra-wealthy, leaving average citizens underserved.
Criticism of the Traditional Financial System
Eric Trump further criticized the traditional banking system, labeling it “antiquated” and inefficient. His comments resonate with sentiments shared by many in the crypto community, who argue that blockchain technology and cryptocurrencies offer a faster, cheaper, and more inclusive alternative to traditional financial systems.
Trump also voiced his frustration with existing global financial systems, such as SWIFT, which are used for cross-border transactions. He described SWIFT as “an absolute disaster” due to its slow transaction speeds and high costs. According to him, these inefficiencies in the current system are contributing to the increasing appeal of cryptocurrencies as a viable alternative.
Personal Experience Leading to Crypto Advocacy
In the interview, Eric Trump shared that his interest in cryptocurrencies was fueled by his growing realization of the broken traditional banking system. He claimed that the financial system had been “weaponised” against large segments of the population, particularly those without significant wealth or individuals who hold certain political views.
Trump also stated that the unfair conditions created by the traditional financial system prompted him to explore the cryptocurrency market. His frustrations with the system led him to see cryptocurrencies not just as an investment, but as a necessary alternative for those marginalized by the current banking infrastructure.
USD1 Stablecoin and Trump’s Crypto Involvement
In addition to his comments about banks and cryptocurrencies, Eric Trump’s family has made notable moves within the crypto space. In March 2025, the Trump family launched a new stablecoin, USD1, which is pegged 1:1 to the US dollar. The stablecoin is fully backed by short-term US government treasuries and other cash equivalents, designed to provide a stable and secure digital asset.
USD1 operates on the BNB Chain, a blockchain developed by Binance, a cryptocurrency exchange that has been at the centre of controversy. Allegations surfaced in mid-March about a deal between Binance and the Trump family, reportedly involving a stake in a crypto business as part of plans to relaunch Binance US. Although both Donald Trump and former Binance CEO Changpeng Zhao have denied the claims, Eric Trump’s latest involvement has added fuel to the ongoing debate.
The Growing Importance of Crypto in the Financial Landscape
Eric Trump’s comments underscore the growing significance of cryptocurrency in the financial landscape. As digital currencies continue to gain traction, both institutional and individual investors are recognizing the potential of blockchain technology to disrupt traditional finance.
While banks may resist change, the growing adoption of cryptocurrencies suggests that a financial revolution is underway.
Conclusion
Eric Trump’s bold statement about the extinction of banks within a decade if they do not adopt crypto reflects the changing tides of global finance. As cryptocurrencies gain traction in both traditional financial sectors and among personal investors, the financial system may soon look very different.
The rise of crypto, coupled with Eric Trump’s personal involvement in the sector, signals the increasing shift toward digital assets, with significant implications for the future of banking.
Frequently Asked Questions (FAQ)
1- Why does Eric Trump believe banks may face extinction?
Eric Trump believes that traditional banks, which he views as slow, expensive, and outdated, risk becoming obsolete if they don’t embrace cryptocurrencies.
2- How has the banking sector responded to the rise of crypto?
Globally, some banks, particularly in Europe, have started adopting cryptocurrencies and offering crypto-related services, while others remain resistant to change.
3- What is USD1, and how is it linked to the Trump family?
USD1 is a stablecoin launched by the Trump family, pegged 1:1 to the US dollar and backed by short-term US government treasuries and other cash equivalents.
4- Will the shift toward crypto change the future of banking?
As cryptocurrency adoption increases, traditional banking systems may evolve or face significant disruption, offering new opportunities for innovation and efficiency in finance.
Appendix glossary of key terms
Cryptocurrency – Digital assets that use blockchain technology to secure transactions and control the creation of new units.
Stablecoin – A type of cryptocurrency designed to maintain a stable value, often pegged to a fiat currency like the US dollar.
SWIFT – A global network used by banks to send and receive financial information securely, often criticized for inefficiency in cross-border payments.
Blockchain Technology – A decentralized ledger system used to record transactions across multiple computers, ensuring transparency and security.
Layer 2 Solutions – Technologies built on top of existing blockchains to enhance scalability and reduce transaction costs.
USD1 – A stablecoin launched by the Trump family, backed by US government treasuries and designed to maintain a 1:1 peg with the US dollar.
BNB Chain – A blockchain network developed by Binance, used for various crypto applications and transactions, including stablecoins like USD1.
References
CoinPedia – coinpedia.org
CoinGape – coingape.com
Cointelegraph – cointelegraph.com
