In the Money Talks podcast on November 27, Eric Trump gave a simple example. Imagine you own 1 million dollars worth of Bitcoin and want to buy a house worth 800,000 dollars. With banks, that process can take up to 120 days. It involves countless paperwork, KYC checks, and many intermediaries, all of whom charge fees.

Mr. Trump explained that with DeFi, you can process the same loan almost instantly. You can borrow directly using your Bitcoin. Within minutes, you will receive the money in your wallet. There are no banks, waiting times, or approval committees involved. Just that speed alone has changed everything.

The Banks Are Unsatisfied

Mr. Trump has clearly stated why banks like JPMorgan dislike this change. Traditional finance relies heavily on fees. Origination fees, inspection fees, appraisal fees, and lengthy approval processes all generate revenue.

These fees fund the massive skyscrapers that banks proudly operate. DeFi eliminates most of those intermediaries. When you borrow money based on your cryptocurrency assets, banks lose control and income from those assets. That's why, according to Mr. Trump, banks oppose this change.

Another important point that Trump emphasizes is how blockchain manages risk better. If Bitcoin's price drops, DeFi systems can adjust collateral in real-time. Protocols can sell part of their assets to ensure a safe loan-to-value ratio. Such transactions cannot be executed with traditional assets like real estate. They are slow and lack liquidity. Collateral assets in blockchain are liquid and continuously responsive 24/7.

Control Rights Returned to Users

Mr. Trump questions why banks decide whether people can borrow money based on their assets. With DeFi, that decision is returned to the individual. Users control their assets, loans, and risks. As he pointed out, this feature is not just theoretical. It is functioning effectively today with Bitcoin and other cryptocurrencies.

Conclusion

DeFi is redefining the rules that banks have used for decades. Quick loans, reduced costs, and complete user control are changing expectations. As Eric Trump has made clear, when individuals get used to borrowing money without hassle, the old system begins to become obsolete.