Allies Fear Trump Could Disrupt US Payment Systems

U.S. allies worry that President Donald Trump’s administration could use payment systems as political leverage.

Jon Cunliffe, who served as Bank of England deputy governor from 2014 to 2024, pointed out the heavy reliance on U.S.-based Visa and Mastercard.

These systems dominate daily and international transactions, leaving little room to avoid American banks.

Payments as Political Leverage

At a National Institute of Economic and Social Research event on September 16, 2025, Cunliffe highlighted actions against Greenland and Canada.

“Payment experts are questioning, ‘Can I rely on the U.S. system if it’s turned against me?’” he said. He noted Trump’s willingness to pressure both allies and rivals.

Trump’s UK Visit Raises Stakes

The remarks came during Trump’s second state visit to Britain, where he has a strong rapport with Prime Minister Keir Starmer. This context heightens fears about U.S. financial control.

Military Parallels Drawn

Cunliffe compared the issue to concerns about U.S. fighter jets, like the F-35, which some fear could be remotely disabled.

“Payments face a similar ‘kill switch’ risk,” he said. Visa and Mastercard’s 2022 exit from Russia after the Ukraine invasion shows this power.

Central Banks Sound Alarm

Bank of England Governor Andrew Bailey expressed worry over Trump’s push to influence the Federal Reserve’s independence.

On September 3, 2025, former BoE official Adam Posen warned that a politicized Fed might not provide dollar loans during crises, unlike after the 2008 crash.

Preparing for Dollar Risks

The Bank of England and European Central Bank are urging banks to plan for scenarios without Federal Reserve dollar access. This step anticipates potential disruptions.

Cunliffe’s Take

Cunliffe believes U.S. leaders value dollar swap lines to prevent global financial chaos. Yet, he cautioned that a sudden drop in dollar confidence could trigger a crisis like those in emerging markets.

Global Impact

The dollar’s dominance pushes allies to seek alternative payment systems. Reducing reliance on U.S. infrastructure is a priority amid shifting geopolitics.

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