Eric Trump says sovereign funds are adopting crypto due to currency risk, energy use for mining, and rising demand in emerging markets.
Sovereign wealth funds are showing interest in cryptocurrencies as governments review currency stability and financial systems.
Eric Trump discussed this trend during a Yahoo Finance interview, pointing to global economic stress and uneven access to banking services.
Growing Interest From Sovereign Wealth Funds
Eric Trump said sovereign wealth funds are entering crypto markets due to concerns about fiat currency strength.
He stated that many funds see traditional currencies weakening amid debt growth, inflation pressure, and reduced public trust.
During the interview, Trump described the current financial environment as unstable.
He said some currencies are viewed as unreliable because of political risk and poor fiscal management. This environment has pushed funds to explore alternative assets.
He also noted that sovereign funds tend to move early when systems change. Crypto assets are seen as liquid, transferable, and independent of national banking controls.
Developing Economies Driving Crypto Demand
Trump said demand for crypto is stronger in developing regions than in the United States. He explained that many countries lack modern banking systems and dependable payment infrastructure.
In these regions, digital assets can move value without relying on local banks. This can support cross-border trade and personal savings where services are limited or costly.
Trump said, “Crypto solves problems where banks do not exist or cannot be trusted.” He added that this need explains faster adoption outside developed economies.
Energy Use, Mining, and National Reserves
Trump stated that some government-backed funds are using excess seasonal energy for Bitcoin mining. This includes surplus winter energy that would otherwise go unused.
He explained that mining allows states to turn excess power into a tradeable asset. This approach is being tested by several countries with large energy resources.
Trump also said some governments have added Bitcoin to national reserves. He noted this step reflects interest in assets outside traditional reserve currencies.
Regional Activity and Financial Systems
According to Trump, Asia is leading in crypto adoption among institutions. He pointed to strong participation from funds and firms across several Asian markets.
He said these regions are building systems that support faster payments and lower costs. Crypto platforms can settle transactions without multiple intermediaries.
Trump said digital assets reduce reliance on large banks. He added that blockchain systems can increase transparency and reduce transaction delays across borders.
Source: https://www.livebitcoinnews.com/why-sovereign-wealth-funds-may-be-moving-into-crypto-eric-trump/
