'In some ways, the dollar has also become a de facto branch of the U.S. armed services. For over three decades now, the United States has increasingly weap- onized financial sanctions as an alternative to military intervention. To say that China has been watching U.S. actions to punish Russia would be an understatement.

As I have repeatedly emphasized, fear of sanctions is a major impetus underlying China’s drive to internationalize the renminbi, to develop its own central bank digital currency (as discussed in chapter 19), and to create parallel rails for clearing international financial transactions away from the prying eyes of U.S. authorities.

China’s payment system has already been accepted by some other countries. U.S. allies, who sometimes see shades of gray where Americans see black and white, are also concerned about U.S. financial sanctions overreach. Dismissing the allies as spineless, as the U.S. commentariat so often does, misses genuine disagreements that could later come back to bite the United States if it ignores them.

The ability to monitor global transactions and impose financial sanctions is great for the U.S. government but creates strong incentives for the rest of the world to circumvent not only the dollar but all parts of the plumbing of the in- ternational financial system over which the United States exerts control (major credit cards, dollar bank transfers, and the like).

K.Rogoff 'Our Dollar Your Problem' pg 216-217