U.S. Influence Sparks Financial Anxiety Among Allies
Allied countries are increasingly worried that the Trump administration could leverage U.S.-dominated payment systems for diplomatic pressures. Jon Cunliffe, former BoE official, highlights concerns as Visa and Mastercard dominance raises potential for geopolitical manipulation. Policymakers urge caution with possible independence threats to the Federal Reserve amid Trump's state visit to Britain.
Countries allied with the U.S. are gradually questioning the reliability of American-dominated payment systems, sparking concerns that the Trump administration may weaponize these systems for diplomatic leverage.
Jon Cunliffe, former deputy governor of the Bank of England, commented on these apprehensions during a National Institute of Economic and Social Research event in Britain.
Cunliffe noted that apprehensions about U.S. geopolitical maneuvers extend beyond payments systems to military technology, drawing parallels with Western reluctance to purchase U.S. fighter jets. Amidst these tensions, Trump commenced a state visit to Britain after cementing ties with Prime Minister Keir Starmer.
(With inputs from agencies.)
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