Bankless
How the Stablecoin Milkshake Will Redollarize the World | Brent Johnson
AI Summary
In this episode, Brent Johnson revisits his Dollar Milkshake Theory, arguing that while de‑dollarization narratives gain traction, the Eurodollar system and debt dynamics will ultimately pull demand back to the U.S. dollar, especially as sovereign debt crises trigger political instability. He highlights how stablecoins—bolstered by the GENIUS Act—could accelerate a "redollarization" by providing a digital, dollar‑denominated store of value and medium of exchange, and discusses China’s dual‑currency strategy as a counter‑move. Johnson concludes with investment positioning advice, emphasizing the importance of monetary sovereignty and the likely resurgence of the dollar in crisis scenarios.
Episode Description
Brent Johnson returns to Bankless to update the Dollar Milkshake Theory and explain why the de-dollarization narrative misses the bigger trend. He argues markets may want out of the dollar, but the Eurodollar system keeps pulling demand back in, and “dollar down” headlines do not break the framework. Brent also covers how debt stress can spill into political instability, why stablecoins and the GENIUS Act could accelerate re-dollarization, and what this means for monetary sovereignty. We close with China’s counter-strategy and how Brent thinks about positioning from here.
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TIMESTAMPS
0:00 Intro
1:20 De-Dollarizing vs Re-Dollarizing: Milkshake Recap
4:18 What a Sovereign Debt Crisis Actually Means
5:45 Central Banks as “Professional Can-Kickers”
8:56 Can They Slowly Let the Air Out?
11:03 Can AI Productivity Save the System?
13:06 2025 Setup: The Narrative for Dedollarization
18:06 BRICS: Conference Talk vs Structural Reality
23:37 Store of Value vs Medium of Exchange
34:24 “Crisis = Dollar Up” (and the April Exception)
39:06 Stablecoin Redollarization and the GENIUS Act
47:20 Monetary Sovereignty, Faster Bank Runs, Faster Dollarization
52:34 China’s Response: Two Currency Stacks
54:21 Positioning as an Investor
RESOURCES
Brent Johnson
https://x.com/SantiagoAuFund
The Dollar Milkshake Theory
https://research.santiagocapital.com/p/the-dollar-milkshake
Not financial or tax advice. See our investment disclosures here:
https://www.bankless.com/disclosures
Show Notes
Brent Johnson returns to Bankless to update the Dollar Milkshake Theory and explain why the de-dollarization narrative misses the bigger trend. He argues markets may want out of the dollar, but the Eurodollar system keeps pulling demand back in, and “dollar down” headlines do not break the framework. Brent also covers how debt stress can spill into political instability, why stablecoins and the GENIUS Act could accelerate re-dollarization, and what this means for monetary sovereignty. We close with China’s counter-strategy and how Brent thinks about positioning from here.
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📣SPOTIFY PREMIUM RSS FEED | USE CODE: SPOTIFY24
https://bankless.cc/spotify-premium
---
👑BANKLESS PREMIUM | AD-FREE & BONUS EPISODES
https://bankless.cc/spotify-premium
🎯THE DEFI REPORT | ONCHAIN INSIGHTS
https://bankless.cc/the-defi-report
💰ICO WATCH | UPCOMING PUBLIC TOKEN SALES
---
TIMESTAMPS
0:00 Intro
1:20 De-Dollarizing vs Re-Dollarizing: Milkshake Recap
4:18 What a Sovereign Debt Crisis Actually Means
5:45 Central Banks as “Professional Can-Kickers”
8:56 Can They Slowly Let the Air Out?
11:03 Can AI Productivity Save the System?
13:06 2025 Setup: The Narrative for Dedollarization
18:06 BRICS: Conference Talk vs Structural Reality
23:37 Store of Value vs Medium of Exchange
34:24 “Crisis = Dollar Up” (and the April Exception)
39:06 Stablecoin Redollarization and the GENIUS Act
47:20 Monetary Sovereignty, Faster Bank Runs, Faster Dollarization
52:34 China’s Response: Two Currency Stacks
54:21 Positioning as an Investor
---
RESOURCES
Brent Johnson
The Dollar Milkshake Theory
https://research.santiagocapital.com/p/the-dollar-milkshake
---
Not financial or tax advice. See our investment disclosures here:
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