Eric Trump’s Stark Warning: Crypto Adoption or Bank Extinction Within 10 Years

Key Takeaways: Eric Trump warns traditional banks risk extinction without crypto adoption. Fed’s policy may accelerate Bitcoin’s rise to $1 million. ECB’s Christine Lagarde rejects crypto due to volatility and liquidity risks. Eric Trump, executive vice president of the Trump Organization and son of U.S. President Donald Trump, says traditional banks could vanish within 10 years if they don’t adapt. He believes the rise of digital assets reshapes finance, and banks that ignore crypto adoption will fall behind. Are Banks Stuck in a 50-Year-Old Financial Model? In an exclusive interview with CNBC on April 30, Eric Trump described the modern financial system as broken, slow, and expensive. Eric Trump: Banks are outdated. If banks don’t change, they’ll be left behind. They favour only the rich and punish regular people. That’s why I turned to crypto. pic.twitter.com/qZD3oDtIPw — Kashif Raza (@simplykashif) April 30, 2025 He believes the system, dominated by traditional banks, is stuck in the past, relying on technology such as SWIFT, which dates back to 1973. SWIFT is a revered global messaging network that powers most cross-border payments. Eric Trump called it an absolute disaster, pointing out how it often takes days to move money from one country to another. Transfers take 1–5 days, sometimes longer if multiple banks are involved. Each bank adds delays with its own checks, and missing deadlines can make transfers even slower. These hurdles make the system feel outdated and inefficient, especially in today’s digital world. Eric Trump argues that this slow pace benefits the ultra-wealthy, not ordinary people. Those with large assets can access exclusive banking services, better loan rates, and special investment opportunities. He sees crypto adoption as a way to level the financial playing field. For example, sending Bitcoin or Ethereum can take just a few minutes, while some newer blockchains settle transactions almost instantly. He added that anyone can open a decentralized finance (DeFi) or cryptocurrency app and instantly send money directly from wallet-to-wallet. The transaction would be processed without the high fees or unpredictability associated with banks. Will Crypto Adoption Define the Next Era of U.S. Finance? Eric Trump is not alone in his views. Many in the crypto community share his belief that digital assets are the future of finance. Major institutions like JPMorgan and Goldman Sachs are investing in blockchain, digital asset infrastructure, and even exchange-traded funds (ETFs). The U.S. Federal Reserve has also withdrawn major guidance that discouraged banks from investing in crypto and stablecoins. SWIFT itself is feeling the pressure. In response to the rise of crypto adoption, the network plans to pilot digital currency transactions in 2025. Exciting news! Starting next year, financial institutions from around the world will start trialling live digital asset and currency transactions on the Swift network. This marks an important milestone in our journey to enable banks to transact interchangeably across both… pic.twitter.com/70BxOMoBpT — Swift (@swiftcommunity) October 3, 2024 This move is intended to bridge the gap between old and new, allowing banks to send and receive digital assets alongside traditional currencies. Eric Trump’s outlook aligns with his previous bold prediction that Bitcoin would reach $1 million per coin. ERIC TRUMP: “I AM CONFIDENT THAT #BITCOIN IS GOING TO HIT $1 MILLION” HE KNOWS WHAT’S COMING pic.twitter.com/1WtlxtZ2eg — The Bitcoin Conference (@TheBitcoinConf) March 18, 2025 In line with this vision, Eric and his brother, Donald Trump Jr., partnered with Hut 8, a publicly traded Bitcoin mining company. The partnership will create a new subsidiary in the U.S. named American Bitcoin. The development aligns with his father President Trump’s promise to make America the sole hub of crypto. The Trump family has also launched a U.S. dollar-backed stablecoin through World Liberty Financial, a crypto venture they control. Can Crypto Overcome Its Volatility Problem? Many global banks remain skeptical when it comes to cryptocurrency. The risk it poses to financial systems is a major concern. For example, the Bank of Italy holds a cautious stance on crypto adoption . Italian officials assert that if crypto becomes more integrated into its traditional financial systems, it could create greater instability in markets. European Central Bank (ECB) President Christine Lagarde shares these concerns. She recently blocked a proposal to add Bitcoin to the Czech Republic’s reserves , arguing it fails the ECB’s standards for reserve assets—stability, security, and liquidity. Her caution proved justified weeks later. When the U.S. announced sweeping trade tariffs in early 2025, both stock and crypto markets plunged, exposing crypto’s vulnerability to economic shocks. Bitcoin price dropped from over $90K to around $74K. This volatility in crypto assets has raised doubts about their ability to provide the stability and security needed for financial markets. Frequently Asked Questions (FAQs) Can crypto replace traditional banks for the unbanked? Yes, if they have a smartphone and internet. Cryptocurrencies like Bitcoin and stablecoins let people in remote areas send, receive, and store money instantly, without a bank account. This is a game-changer in countries like the Philippines, Peru, and Morocco, where traditional banking infrastructures are weak. Why do banks still block crypto startups from basic services? Most banks enforce strict policies on crypto firms, citing regulatory risks. The result? Endless delays, scrutiny, and frequent rejections for routine needs like payroll, expenses, or fiat conversions. The post Eric Trump’s Stark Warning: Crypto Adoption or Bank Extinction Within 10 Years appeared first on Cryptonews .

Source: cryptonews