Immediately after Russia invaded Ukraine in 2022, the U.S. and its allies froze roughly $300 billion in Russian central bank reserves. The move shocked the world, signaling that assets – dollar assets – can be seized, setting a frightening precedent for anyone worried about falling out of line with Washington. Joining Jay Sapsford in a special in-person episode live from the U.S. Chamber building in Washington are Josh Lipsky from the Atlantic Council and Edward Fishman from the Council of Foreign Relations.

Our guest Lipsky says we have been living with the repercussions ever since, with implications for cross-border payments, digital assets and a growing distrust of the dollar as world currency: “Every time a country builds a new payment system to work around the dollar, you can trace the decision back to this day.”

Fishman sees the move as a major step toward ‘economic warfare,’ in which countries leverage geography (Iran with Hormuz) or crucial resources (China with rare earths) to vie with rival and pursue interests. As Fishman describes it, the ultimate chokepoint has been the dollar and the U.S. role in cross-border settlements.

All of which raises questions about whether the growing use of sanctions has kicked-started an effort to find a tech-based alternative to the greenback. Or put more simply: Has the seizure of Russian assets undermined the dollar?

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