"The current financial system is broken, it's slow and expensive," Trump declared in an interview with CNBC on April 30, adding that the current banking system "favors the super-rich."
"It drove me into the world of cryptocurrencies," he continued, "and I'll tell you, if banks don't keep an eye on what's coming, they're going to be extinct in 10 years.
Emphasizing the need for banks to keep a close eye on developments in the crypto industry, Trump highlighted the benefits of the blockchain technology behind cryptocurrencies to the financial system.
He trashed existing solutions for cross-border transactions, such as the global international messaging network SWIFT, which is often criticized for its turtle-like transactions.
"There is nothing that can be done on blockchain that can't be done better than the way current financial institutions work. SWIFT is an absolute disaster," he stated.
With the advent of cryptocurrencies, traditional payment instruments such as SWIFT risk losing market share to decentralized alternatives, Trump said, "You can open the DeFi app right now, you can open any cryptocurrency app and send money, wallet to wallet, instantly, no additional costs, no variability."
Trump's warning comes amid a backdrop of many global banks still resisting the adoption of cryptocurrencies, with Italy's finance minister stated that U.S. stablecoins pose a greater threat than tariffs.
Trump's new prediction is in line with his previous bold predictions about cryptocurrencies. In December 2024, Eric Trump predicted that bitcoin would inevitably reach a price of $1 million, while global governments and institutions would have to embrace cryptocurrency to compete in the rapidly growing market.
