So a exchange can both
mint the cryptoDollar
AND hold the dollar deposited,
no way such system can be abused.. btw i like your idea with a Swiss number account, seems totally legit to me

Well, exchange already holding your dollars and altcoins anyway.
Best account may have where no one can't withdraw by self (need several holders sign) and minting/buy back are automatic transfer.
This is not problem when there is some money, but we need to start more simple.