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DUBAI, United Arab Emirates — Eric Trump has issued a strong message to financial institutions: adapt to new realities or face extinction.
“The current financial system is flawed, characterized by slow processes and high costs,” the executive vice president of the Trump Organization remarked during an interview with CNBC’s Dan Murphy in Dubai, focusing on the UAE’s rise as a center for cryptocurrency.
He sharply criticized the existing banking framework, stating, “There’s nothing that can be done on blockchain that can’t be done more efficiently than through current financial practices. SWIFT is an overwhelming failure,” referring to the major global network used for financial transactions.
Describing traditional banking as “outdated,” Eric Trump echoes a sentiment shared by many advocates of cryptocurrency, emphasizing the inefficiencies that plague these institutions.
The son of former U.S. President Donald Trump has been actively visiting the UAE as the Trump Organization expands its real estate ventures in the region, which is quickly establishing itself as a significant player in the cryptocurrency market.
A strong proponent of digital currencies, Eric Trump confidently predicted in December that bitcoin could reach $1 million while speaking at the Bitcoin MENA 2024 conference in Abu Dhabi.
Despite significant market volatility due to a decline in risk assets and trade tariffs imposed during his father’s administration, bitcoin was valued at approximately $95,357 as of late Tuesday.
“Our banking system is biased towards the extremely wealthy,” Eric Trump elaborated. “My entry into cryptocurrency was driven by the realization that our financial system was designed to disadvantage the vast majority, including those who may not have significant wealth or who support alternative political views. If banks don’t adapt to the upcoming changes, they could find themselves obsolete within a decade.”
A new era for crypto?
His remarks come as the banking sector grapples with the explosive growth of cryptocurrency, which promotes financial decentralization and diminishes the reliance on traditional institutions.
Decentralized finance (DeFi) platforms facilitate direct transactions between users with minimal or no processing fees, challenging the revenue models of established banks.
“With a DeFi app, you can transfer funds wallet-to-wallet in real-time, without the burdensome costs or inconsistencies associated with traditional banks,” he added.
In response to the increasing acceptance of digital currencies, major banks such as JP Morgan and Goldman Sachs have launched their own blockchain initiatives and crypto trading operations.
Nonetheless, skeptics of this relatively nascent asset class caution that issues such as inadequate regulation, security risks, volatility, and limited consumer safeguards pose significant threats to users.
The Trump administration has expressed enthusiasm for the burgeoning crypto sector; both Donald Trump and Melania Trump have even introduced their own meme coins, raising concerns regarding potential conflicts of interest. The Trump family is also involved with the crypto platform World Liberty Financial, which was co-founded with Steve Witkoff, a real estate magnate and current White House Middle East envoy.
Eric Trump and his brother, Donald Trump Jr., recently revealed intentions to introduce a U.S. dollar-backed stablecoin through World Liberty Financial, and they have initiated a bitcoin mining venture named American Bitcoin, collaborating with Hut 8 CEO Asher Genoot.
Meanwhile, the UAE continues to draw international interest from crypto investors and startups, bolstered by its favorable regulatory environment for digital currencies. Eric Trump and others connected to the Trump Organization have acknowledged the positive relationships formed with leaders in the Gulf, viewing the region as a pivotal market with business-friendly policies.
Eric Trump’s statements are particularly pertinent as his father prepares for a visit to the Gulf region from May 13 to 16, which will include stops in the UAE, Saudi Arabia, and Qatar. This marks the first visit by a sitting U.S. president to the Emirati sheikhdom since George W. Bush’s trip in 2008.
The upcoming trip symbolizes the strong diplomatic rapport the Trump administration has fostered with Gulf states; notably, President Trump’s initial overseas visit as president was to Saudi Arabia.
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