For a lot of Americans, de-dollarization won’t be a bad thing. From Thomas Fazi at unherd.com:
The most important element in the debate over the utility of Western sanctions against Russia, is also the most ignored. The sanctions regime mostly comprises of restrictions that have been deployed before, such as export bans and the freezing of certain assets. Even the controversial exclusion of a number of Russian banks from the main international banking message system, SWIFT, was not exceptional, having already been used against Iran.
But the freezing of Russia’s foreign-exchange reserves, worth around $300 billion — about half of its overall reserves — was significant. While the US had behaved similarly with Afghanistan, Iran, Syria and Venezuela, none of these targets was remotely as powerful as Russia: a member of the G20, and the world’s largest nuclear power. Likewise, none of the 63 central banks that are members of the Bank for International Settlements (BIS) in Basel — known as the central bank of central banks — had ever been the target of financial sanctions, not even during the Second World War.
At the time, the decision received relatively little attention. Future historians, however, will look back on it as the trigger that set in motion one of the biggest snowball effects in history, one which now threatens the very foundations of the American Empire.
In our age of fiat money, reserves aren’t held in the form of physical dollars (or other currencies) stashed in the vaults of foreign central banks. They are simple IOUs — a credit recorded in the accounting sheets of the Federal Reserve and other central banks. In the dealings between countries, just as in the dealings between individuals or companies and commercial banks, trust is therefore fundamental: just as you would never deposit your salary in a bank if you had even the remotest fear that it might freeze or confiscate your money, no country wants to hold reserves which may be snatched away at any moment.