Eric Trump’s recent claim that traditional banking is doomed and cryptocurrency is the future has sent the crypto world into a delightful tizzy. Folks are understandably weighing in on this major issue. Through his excellent storytelling he brings to life a financial system headed for catastrophe. It is indeed due for disruption, driven by the blockchain’s revolutionary promise. While his vision might resonate with crypto enthusiasts, we need to ask: whose disruption are we talking about? Will this revolution truly benefit the underbanked? Or will it just create new avenues for the rich to get richer?
Crypto: A Bridge or Another Wall?
Perhaps the most powerful temptation of cryptocurrency is that it holds the promise of democratizing finance. With a reliable smartphone in hand, the unbanked can easily acquire loans, savings accounts, and make payments. This is the promise of DeFi and it’s a beautiful one. Now, picture that same single mother in a developing country. After several tries, she gets a microloan to launch her own business, outmaneuvering the predatory lenders and forging a path toward a better life for her family. That’s the sort of proactive vision that inspires people to take crypto seriously.
Let's not get carried away. The reality is far more complex. Crypto's volatility is a major concern. Now picture that same single mother, with no other options, having her entire savings erased overnight by a market crash. That's not empowerment; that's devastation. Most DeFi protocols are exceedingly complicated. Yet this complexity requires a sophisticated level of financial literacy that many people—including those in communities often left behind—do not have access to. Are we really empowering them, or just preparing them to be taken advantage of by slick scams and rug pulls?
The UAE’s adoption of crypto as a business hub, though pioneering, leaves a lot to be desired. Will this become a haven for innovation and financial inclusion, or a playground for the ultra-rich to avoid regulations and taxes? I think the answer will most definitely depend on the regulatory structures put in place. These frameworks will likely decide if they choose to uplift the needs of the vulnerable or uphold the interests of the powerful.
The Forgotten Voices in the Crypto Chorus
We’d like to hear from the communities crypto claims to serve better. What are their actual needs and concerns? Are they mindful of the long-term benefits that crypto can provide? Do they have the resources to get it in a safe manner? As usual, the debate over crypto is dominated by tech bros and venture capitalists. This does not leave much space for the inputs from the very people who stand to gain—or suffer most.
Consider remittance payments. Crypto has the potential to open up this new world, giving migrants a cheaper and faster means of sending remittances home to their families. Are these communities prepared to learn how to use crypto wallets and exchanges? Are they safe from fraud and deceptive practices? We need to invest in financial literacy programs and build user-friendly interfaces that make crypto accessible to everyone, regardless of their background or education.
It’s not just a case of new technology, it’s an issue of social justice. It’s not against innovation, it’s about making sure the benefits of innovation actually accrue to all, rather than a few. Rather than get carried away in the hype we need to refocus our lens on how crypto is really impacting marginalized communities. Ultimately, we need to be willing to ask hard questions about who’s reaping the benefits of technology investment and who’s being left behind.
From Meme Coins to Meaningful Change?
The Trump administration's flirtation with crypto, including the Strategic Bitcoin Reserve and the potential launch of a Truth Social cryptocurrency, adds another layer of complexity. To some extent, this is good news. On the one hand, it marks an increasing tolerance of crypto as an asset class. Crypto’s largest meme coin, the $TRUMP meme coin, raises major ethical concerns. Further, the super exclusive invite-only dinners provided to token holders create strong ethical issues. Are we really serious about developing a more inclusive financial ecosystem? Or are we simply creating new ways for the rich and powerful to grow their fortunes?
What’s more, the inevitable shift is perhaps best illustrated by the signs that even America’s biggest banks—like JPMorgan Chase and Goldman Sachs—are joining the crypto frontier. And should this trend continue, it may propel larger-scale adoption of cryptocurrency into the mainstream. That said, it raises red flags about centralized control and risks undermining the decentralized control that underwrites this crypto movement. Or, will these institutions use their new power and influence to reshape the crypto landscape entirely to their own interests? Or, will they decide to adopt the tenets of transparency and open government?
Ultimately, whether crypto will fulfill its promise of empowering the underbanked or simply enriching the wealthy is up to all of us. Which is it to be, the former or the latter? And we gotta hold the industry’s feet to the fire. Let’s offer true support to efforts that foster financial literacy and inclusion and elevate the voices of those made most vulnerable.
Eric Trump’s threat to the death of traditional banks might be a condition exaggerated for effect, but it is a clarion call nonetheless. We know the financial landscape is constantly changing. Now we need to make sure that this change works for everybody, and not just a privileged few. The future of finance is not predetermined. It's up to us to shape it.
What can you do, as an individual, to make sure that crypto delivers on its potential for greater financial inclusion? Start by arming yourself with information, supporting the efforts of the organizations and coalitions who are working to close the digital divide, and pushing for responsible regulation. The future of finance is being written as we speak, and your voice is critical to that process.
