Eric Trump, son of U.S. President Donald Trump and executive vice president of the Trump Organization, recently emphasized the transformative potential of blockchain technology for the banking industry. In an interview with CNBC, he asserted that if banks hope to endure the next decade, they must adapt and integrate blockchain solutions into their operations.
Trump articulated his concerns about the existing financial system, describing it as ‘broken, slow, and expensive.’ He pointed out that blockchain technology offers efficiencies that traditional financial institutions cannot match. ‘SWIFT is an absolute disaster,’ he declared, critiquing the Society for Worldwide Interbank Financial Telecommunication’s (SWIFT) current model for international payments and messaging.
Scheduled to speak at CoinDesk’s flagship Consensus 2025 event in Toronto this May, Trump has shown a long-standing interest in the cryptocurrency space. Alongside his brother, Donald Trump Jr., he has been involved in various crypto-related initiatives, including the recent launch of the stablecoin USD1.
Highlighting the advantages of decentralized finance, Trump added, ‘You can open up a [decentralized finance] 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’ associated with banks.
Trump’s interest in cryptocurrency stems from his viewpoint that the traditional banking system disproportionately serves the ultra-wealthy. ‘What actually got me into [cryptocurrency] is the fact I realized our banking system was weaponized against the vast majority of people in our country—either the people that don’t have the zeros on their balance sheet or people who might have worn that red hat that said “Make America Great Again,”’ he explained. This realization, he claims, has prompted him to advocate for the disruption that blockchain can bring to finance. ‘If the banks don’t watch what’s coming, they’re going to be extinct in 10 years,’ he warned.
Interestingly, some U.S. banks have already begun to explore and implement blockchain technology, with JPMorgan leading the way. However, regulatory crackdowns during the previous administration have hindered the full realization of this potential. This dynamic may change under the current political climate, which is more favorable to innovation in the financial sector.
Further evidence of this shift was provided earlier this week when fintech firm SoFi announced a significant re-entry into the crypto market, after suspending services in 2023 during its transformation into a regulated bank. CEO Anthony Noto described a ‘fundamental shift’ in the landscape, allowing for renewed participation in the cryptocurrency sector without the fear of regulatory backlash.
As the financial services landscape evolves, the call for banks to adopt blockchain technology grows louder. The future of banking may depend on how swiftly and effectively institutions respond to this technological revolution.
