Brent Johnson Discusses Impact of Stablecoins on Dollar Milkshake Theory

Brent Johnson, CEO of Santiago Capital and proponent of the 'Dollar Milkshake Theory,' spoke at the 'Bitcoin 2026' conference, highlighting the significant role of dollar stablecoins in supporting his theory. According to Foresight News, Johnson noted that global citizens are increasingly adopting dollar stablecoins due to their superior utility compared to local currencies. This trend effectively undermines national monetary sovereignty and reverses the 'de-dollarization' process into 're-dollarization,' causing concern among central banks worldwide. Johnson explained that the rise of stablecoins has somewhat suppressed Bitcoin prices, as funds that might have been invested in Bitcoin are instead directed towards Tether. However, he argued that for the U.S. to maintain the stablecoin system, it cannot easily suppress other digital assets, which inadvertently provides some protection for Bitcoin. He expressed skepticism about the permanence of fiat currencies, predicting that all fiat currencies will eventually revert to their intrinsic value of 'zero,' with the dollar being the last to fall. Johnson also mentioned that a Bitcoin price surge beyond $1 million would not surprise him, attributing such a scenario to global mass money printing. However, he doubted that most companies would follow Strategy's lead in adding Bitcoin to their balance sheets due to its high volatility, which boards of directors might find difficult to manage. Foresight News explained that the 'Dollar Milkshake Theory' describes the dollar's dominant position in the global monetary system. During times of economic uncertainty or sovereign debt crises, investors flock to the dollar, causing it to act like a 'straw' that draws liquidity from the global 'milkshake.' This strengthens the dollar further while exerting pressure on other countries, particularly those with significant dollar-denominated debt.