By freezing Russia’s foreign reserves in central bank of US, the US told the world that any country's access to their reserve holdings in dollars depends on politics, depends on their foreign policy. If US are not happy with their politics, their foreign policy, US can take away their money. Powerful? Yes. Trustful? Not anymore.
I can tell you now countries will consider their foreign currency reserves in light of their foreign policy. India will do it because their going to war with Pakistan is possible. China will certainly do it with regard to their Taiwan politicy.
We are linking the politics to central bank. This is very harmful to dollar as reserve currency in term of trust.
This is just one of flaws from your post. There are more.