Stablecoins a ‘Stealth Weapon’ for US Power, Dollar Milkshake Creator Says

Brent Johnson, CEO of wealth management firm Santiago Capital and creator of the “Dollar Milkshake Theory,” says that stablecoins may end up being the “stealth weapon” that the U.S. will use to establish a global power.

Stablecoins Could Steal the Sovereignty of Smaller Nations, Expert Says

In a new interview on the Bankless Youtube channel, Johnson says that he believes the U.S. is about to try and use stablecoin technology to further its own power, as opposed to losing power to it.

Johnson’s theory taps into his own “Dollar Milkshake” concept, which ostensibly argues that global liquidity and leverage ultimately get sucked into the U.S. dollar – especially during times of stress – because the greenback sits at the center of global trade and debt.

The investor proposes that stablecoins end up being the main tool for U.S. dominance over the global economy, or at least many other smaller nations.

“It’s really a way for the United States to extend the dollar network throughout the world on a much faster, cleaner, more efficient basis, and you can get into a situation where the world voluntarily adopts the U.S. dollar stablecoin as the preferred medium of exchange. And what that does is a couple of things. One, it extends the United States power to these other jurisdictions, and it steals local sovereignty from the local government. So to me, it’s a great stealth weapon that the United States can use as a tool.”

Johnson uses the U.S.’s current regime change agenda in Venezuela as an example. Noting that there are currently aircraft carriers and warships parked near Venezuela’s coast, making sure the nation is following U.S. orders, Johnson argues that in the future, “airdropping” stables to Venezuelans might be more effective.

The investor said:

“Well, the U.S. could also airdrop U.S. dollar stablecoins to anybody has a digital wallet in Venezuela, and dollarize the economy very quickly because the Venezuelan currency is not very strong and not very usable. If they were to do that, that would in many ways undermine the local government in Venezuela. If the idea is regime change, what’s better then destablizing the local government?

I think there’s many many ways that the United States can use these stablecoins as a geopolitical weapon, but what it also does, is it creates a new system that can be ported from the old euro-dollar system to this new system.”

As per CoinGecko data, the total market cap of all stablecoins is currently at $302 billion and growing at an accelerated pace.

FAQ❓

• What did Brent Johnson say about stablecoins?

Brent Johnson claims stablecoins could become a “stealth weapon” for the U.S. to extend dollar influence and diminish other nations’ monetary sovereignty.

• How does this idea tie into the Dollar Milkshake Theory?

He links it to his Dollar Milkshake Theory, arguing that global demand for the dollar draws liquidity into U.S. financial power structures, and stablecoins could accelerate that.

• Why might stablecoins weaken smaller countries’ control over their currencies?

If citizens adopt USD- stablecoins for everyday use, local governments may lose control over monetary policy and liquidity in their own economies.

• What real-world example does Johnson use to illustrate his point?

He suggests that airdropping U.S. dollar stablecoins in places like Venezuela could quickly dollarize the economy and undercut the local government’s monetary authority.