In a bold statement at a CNBC event in Dubai, Eric Trump, Executive Vice President of the Trump Organization, declared that traditional banks risk extinction within a decade if they fail to adapt to the rapidly evolving financial landscape dominated by cryptocurrencies and decentralized finance (DeFi).
"The modern financial system is broken, it's slow, it's expensive," Trump asserted, highlighting the inefficiencies of legacy systems like SWIFT. He emphasized that blockchain technology offers superior alternatives, enabling instantaneous, low-cost transactions without the need for traditional intermediaries. Specifically, Eric Trump clarified, “There’s nothing that can’t be done on blockchain that can’t be done better than the way that the current financial institutions are working.”
Trump's remarks come as the United Arab Emirates (UAE) positions itself as a global cryptocurrency hub, attracting investors and startups with its supportive regulatory environment. The UAE's progressive stance contrasts with the U.S., where the financial sector is grappling with the implications of a rapidly digitizing economy.
In the U.S., the Trump administration has taken significant steps to integrate cryptocurrencies into the national financial strategy. In March 2025, President Donald Trump signed an executive order establishing a Strategic Bitcoin Reserve, utilizing approximately 200,000 Bitcoin (BTCUSD) seized by federal agencies.
Don’t Miss:
- As Apple Moves In, Smart Home Stocks Are Set to Pop—Here’s One Under $2
- Think it’s too late to invest in the booming AI sector? This one’s still under the radar
However, the administration's crypto-friendly policies have sparked controversy. The launch of the $TRUMP meme coin, coupled with offers of exclusive dinners for top token holders, has raised ethical concerns and allegations of "pay-to-play" schemes. Despite these controversies, the administration continues to advocate for the integration of digital assets into the financial system. Recent reports suggest that President Trump’s social media network, Truth Social, is considering the launch of its own cryptocurrency.
The banking sector faces increasing pressure to adapt. Some major institutions like JPMorgan Chase (JPM) and Goldman Sachs (GS) have initiated digital asset projects in a move to adapt, while others are not quite as convinced and lagging behind. Notably, JPMorgan is one of the most crypto-friendly institutions, having already launched its own crypto token that processes over $1 billion in transactions daily. Goldman Sachs has started buying billions in crypto assets as it makes a big bet that crypto will be an integral part of modern finance.
Regardless, it’s not clear if these moves will be enough to ensure the legacy banks remain relevant. The rise of peer-to-peer transactions cuts out the centuries-old middleman, meaning traditional financial institutions could still be disrupted. As Eric Trump warns, “If banks don’t watch what’s coming, they’ll be extinct in 10 years.”
On the date of publication, Caleb Naysmith did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
