Eric Trump said that civilians could face slow and high-cost bureaucracies in the current financial systems. “Traditional banks could be extinct in ten years,” said Eric, if the institutions do not embrace crypto or blockchain technology.
Eric Trump’s statement paints a dire picture for traditional banks. He stated during an interview with CNBC, “Without the due adoption of crypto and blockchain technologies, banks could ‘be extinct in ten years.’” Eric Trump extends an ominous warning to banks on the adoption of cryptocurrency.
Critique of Traditional Systems
Eric claims legacy systems are ‘an absolute disaster’ and goes further in describing SWIFT. Eric, for example, describes how bankers never attempt to beat the race against the 4 p.m. wire cut-off only to wait several days for funds to settle. Toward accomplishing this goal, Eric contrasts this with the speed shown in cryptocurrency transacted as opposed to the wasteful cuts and waiting times provided by banks. Describing the mortgage process, Eric claims a compliance check can stretch as far as 120 days so much so that “by the time you get the mortgage, the house that you want to buy is already gone.” Throughout these troubling remarks while offering solutions, Eric argues with startling accuracy, claiming, “Our banking system is broken, our banking system is antiquated, our banking system fictitiously favors the ultra-wealthy.”
Blockchain as Trump’s Disputed Alternative Inclination
Trump touted blockchain technology as an alternative to existing financial infrastructure that overrides anything currently in use. He noted, “There’s nothing that can be done on, you know, blockchain that can’t be done better than the way that the current financial institutions are working.” He explained how DeFi apps now enable consumers to send payments overseas sans currency conversion fees and circumvent opaque intermediaries. Demonstrating the speed and efficiency of digital asset transfers, Trump said, “You can open up a DeFi app right now, you can open up any cryptocurrency app, and you can send money, wallet to wallet, instantaneously, without the expense, without the variability.”
Trump provides a direct concern for traditional financial incumbents, warning them to keep pace. “If the banks don’t watch what’s coming, they’re going to be extinct in ten years,” he noted. In conjunction with a rising tide of crypto proponents, he seems to believe blockchain is a faster, cheaper substitute for conventional clearinghouses and other old-fashioned financial processes. Having recently, reportedly, courted Bitcoin proponents, Donald Trump’s remarks still forecast the demise of financial institutions too slow to adapt to emerging technologies.
Modernization Pressure
Trump’s evaluation adds to the already growing pressure on banks to overhaul their payments system, especially with the digitization of assets regulation heading toward implementation in Washington. Additionally, he criticized the continued functioning of bank branches operating “9 to 5 with a long lunch break” as a relic of the past not fit for a globalized economy. In Trump’s words, the limited hours accentuated the overly conservative posture of the traditional financial institutions embracing fintech innovations.
Cryptocurrency Snapshot and Context
Simultaneous to Eric Trump’s interview, the cryptocurrency market had some interesting dynamics. With a 24-hour change of -2.01%, the global market cap was $3.07 trillion. The total volume traded was $104.22 billion. Bitcoin Dominance was at 65.84% and Ethereum Dominance at 7.64%. The stablecoin supply had reached $221.38 billion. The currently selected Bitcoin was trading for $94,796.00, showing a +0.33% change in 24 hours along with a 24h volume of $26.58 billion and a valuation of $1.88 trillion. Ethereum was later priced at $1,808.22, which was up 0.79% over 24 hours with a $13.66 billion 24h volume and a $218.27 billion valuation. Solana traded at $148.33 this time, showing a +2.28% change in 24 hours along with a $3.34 billion 24h volume and an $88.91 billion valuation. POL (ex-MATIC) was at $0.24 and increased 1.63% over 24 hours with a $76.18 million 24h volume and a $2.49 billion valuation. The Fear & Greed Index for the day registered 53, which means neutral market sentiment. All these numbers paint a picture of the current state of the market while the future of finance is still being debated.
