Bankless How the Stablecoin Milkshake will Redollarize the World | Brent Johnson
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Jan 5, 2026 
Brent Johnson, Founder of Santiago Capital and creator of the Dollar Milkshake Theory, dives into the complexities of global currency dynamics. He argues that while some may want to de-dollarize, the Eurodollar system continues to enforce dollar demand. Johnson discusses how the GENIUS Act could boost the use of stablecoins and facilitate redollarization. He also explores the implications of sovereign debt crises, the influence of AI on economic conditions, and the emerging currency competition between the US and China.
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Desire vs Ability To De-Dollarize
- Desire to de-dollarize is strong, but the eurodollar network's size makes exit extremely difficult.
- The world relies on dollar plumbing because private markets found it cheapest and most efficient.
Reserve Shift Without Abandoning Dollars
- Countries may shift reserves from US bonds toward gold or hard assets while still using dollar rails.
- Store-of-value choices can diverge from medium-of-exchange network effects.
Initial Crisis Can Show Dollar Weakness
- In early crisis phases foreigners repatriate USD assets, causing dollar weakness and asset drops temporarily.
- If stress deepens, the dollar flips back up and drives the broader crisis by tightening global credit.