London: A former senior official of the Bank of England has issued a stark warning that the United States, under Donald Trump’s leadership, could weaponize its dominance in global financial systems by effectively pulling a “kill switch” on international payment flows even against long-standing allies.
Jon Cunliffe, who served as Deputy Governor for Financial Stability at the Bank of England until last year, told a policy forum hosted by the National Institute of Economic and Social Research that Western nations remain dangerously exposed to American leverage over payment infrastructure. He cautioned that political decisions in Washington could disrupt the use of U.S. dollar-based systems, global card networks, and banking channels that underpin everyday commerce.
According to Cunliffe, the risk lies in how deeply economies including those of U.S. allies rely on American payment systems like Visa, Mastercard, and dollar clearing banks. While designed as neutral infrastructure, these systems could be transformed into political weapons at moments of diplomatic dispute. “In effect, the United States holds the levers that can determine who is in and who is out of the system,” he said, warning that trust in these mechanisms can no longer be taken for granted.
He drew comparisons with defense equipment, noting how some countries worry about U.S.-made fighter jets being remotely disabled. “The same anxiety now exists in finance,” he said, pointing out that the fear of a switch being flipped to cut off payments is no longer a theoretical exercise but a strategic consideration for central banks.
Cunliffe revealed that several financial authorities, including the European Central Bank and the Bank of England, have been quietly running stress scenarios to test their economies’ resilience if access to U.S. banking corridors or dollar liquidity were suddenly constrained. These simulations aim to prepare for shocks such as withheld swap lines, frozen reserves, or suspended transaction routes.
Although he expressed hope that Washington would recognise it is in its own interest to maintain confidence in the dollar, Cunliffe stressed that policymakers in Europe and beyond are increasingly unwilling to depend on goodwill alone. “Trust in the dollar system has been the anchor of global finance, but trust must be earned and preserved,” he said.
The timing of Cunliffe’s remarks is especially notable, as President Trump is currently in Britain on a rare second state visit. His return to the White House has already reignited debates over U.S. protectionism and unilateral diplomacy. Critics fear his administration may use financial networks not only against adversaries but also to pressure allies into aligning with American priorities.
This concern follows a broader trend: U.S. sanctions and restrictions have already shown how banking and payment systems can be harnessed as tools of statecraft. Cunliffe’s warning suggests that under Trump, these tools may be deployed more aggressively, with fewer restraints.
The implications extend beyond political maneuvering. Businesses, consumers, and governments alike could face sudden disruption to payments and trade if financial channels were restricted. Analysts note that even the perception of such risks could accelerate efforts by other powers including the European Union, China, and India to develop alternative systems that reduce reliance on the U.S. dollar.
For now, the dollar remains dominant, but Cunliffe’s warning highlights a shifting reality: in an era of geopolitical rivalry, the invisible circuits of money may be as contested as the visible theatres of diplomacy and defense.