This piece is a useful reminder that de-dollarization is a slow plumbing project that has been underway for years. Currency swaps, bilateral trade settlement, and parallel institutions do not replace the dollar overnight, but they do reduce marginal dependence over time. Washington's response is also predictable: reinforce existing rails through sanctions, trade leverage, and infrastructure control. So, both sides are rational from their own perspective, and both sides increase fragmentation as a byproduct.
Bitcoin's role in this transition is undoubted, but at $2T market cap, it is not ready to absorb $500T of global store of value. Bitcoin benefits from the fragmentation long term because it is neutral collateral in a world that increasingly distrusts the political neutrality of sovereign money.