The conversation centers on the dollar's role as a global reserve currency, exploring whether the world is de-dollarizing or re-dollarizing. Brent Johnson, founder of Santiago Capital, argues that despite a desire for de-dollarization, the world is becoming more dollarized due to the dollar's network effects and the limitations of alternative currencies. He introduces the GENIUS Act and stablecoins as a method for the U.S. to extend the dollar network globally. Johnson suggests that while hard assets like gold and Bitcoin may gain traction as reserves, the dollar will likely remain the strongest fiat currency. He also notes that the U.S. stock market will remain favorable for global growth, recommending investors hold dollar-denominated assets and maintain some cash on the sidelines.
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