Cryptocurrencies will take over the traditional finance system and leave big banks in the dust, Eric Trump, executive vice president of The Trump Organisation, said at the Token2049 event in Dubai on Thursday.
The modern financial system works well for the top 1 per cent or 0.1 per cent but it doesn't work for the rest of the world, he said.
“Until my family got into politics, I didn't realise how fragile the system was. The second you start saying something that goes against the system, they'll cancel you and come after you. That's what caused me to support cryptocurrency,” he said.
Token 2049 in Dubai – in pictures
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Changpeng Zhao, the former chief executive of Binance, during a fireside chat -
A dance and light performance during the opening day of the Token2049 Dubai summit on Wednesday. All photos: Antonie Robertson / The National -
Guests at the main stage of Token2049 Dubai -
Star Xu, founder and chief executive of OKX, delivering a keynote at the event -
Bitcoin has been a hot topic at the Token2049 Dubai summit -
Token2049 is a conference that unites different blockchain and crypto companies under one banner for collaborations and exchanging ideas -
An electronic board displaying current prices of cryptocurrencies -
Crypto companies and enthusiasts flocked to Dubai to participate at Token2049
“They came after us like animals because of politics. Coincidentally, they were also going after the crypto community. And so, the enemy of your enemy becomes your friend. That made me also realise how antiquated and broken the modern financial system is."
He asked a room full of crypto enthusiasts at the event why it takes 90 or 120 days to get a loan from a financial institution that you've spent 25 years banking with.
Mr Trump is shaping up to become one of the most vocal frontmen for the cryptocurrency industry, for his father, US President Donald Trump.
The US President was once a crypto sceptic. In his first term, he derided Bitcoin and its peers as “not money”, “based on thin air” and something that “can facilitate unlawful behaviour, including drug trade and other illegal activity", and even called it a “scam” after he left office. The turning point was when he began selling non-fungible tokens depicting himself as a superhero in December 2022, a month after he declared his intention to run for president again.
Taking aim at traditional financial institutions, Eric Trump on Thursday said the Swift banking system is “broken” and that it is going to be replaced by cryptocurrency. “Modern finance is absolutely broken. The crypto world is going to take over those big banks and leave them in the dust,” he said.
“Their entire business model is to run arbitrage on fees that become redundant in the crypto environment. If the banks don't embrace crypto right now, they're going to be extinct.”
He recalled receiving letters in 2021 from some of the biggest banks in the world saying that the Trump family’s accounts had been cancelled. These were banks that the family had done business with for 30 to 40 years, he said.
“It made me realise how susceptible people are. But The Trump Organisation had enough zeros on our balance sheet and a loud voice, so the banks couldn't get away with it. However, many people globally have zero financial freedom and no access to the modern financial system,” he said.
“Their cell phone instead offers them access to an even playing field to invest. That gives people financial freedom, the likes of what they've never seen before. You're no longer at the mercy of a government or a currency that you might not trust.”
Mr Trump also warned the rest of the world to be “careful” of the UAE because the local government always fast-tracks project approvals. The company received the permits for its newly announced Trump International Hotel and Tower in Dubai in just one month, he pointed out.
“We are in the dial-up phase of the crypto revolution right now, and the people who are going to make it bigger are the people who are seeing it today, not the people who see it in five years when half the explosive growth has happened,” he said. “Abu Dhabi and Dubai are seeing it today. The countries that can move quickly, are nimble and have foresight are going to win this race.”
Meanwhile, Zach Witkoff, co-founder of World Liberty Financial, a US-based crypto firm backed by the Trump family, said the platform was started to address the gaps that existed in the traditional financial system. These included a lack of transparency, accessibility and inefficiency in cross-border payments, he added. He lauded the crypto world for its transparency, because all transactions happen on the blockchain.
The crypto company’s aim is to democratise access to the financial system, and bridge decentralised finance with traditional finance. “We will wake up in a world in four or five years where the two worlds will merge,” Mr Witkoff projected.
He added that the company’s dollar-pegged stablecoin USD1 was chosen to close Abu Dhabi-based technology investment company MGX’s $2 billion investment in crypto exchange Binance in March.
