The biggest threat to fiat money is inflation. Inflation can be cured by injecting wealth into the economy and by that rising enough belief to keep the system afloat. This can be done for instance by occupying foreign countries and by that opening up new markets to the companies that are essential to the economy. Or this can be done by loose regulations with the derivatives markets, that will create wealth out of thin air and high hopes.
Can it be that pumping of the crypto markets is just another financial shenanigan created to keep the old system afloat?
They are creating new wealth out of nothing with cryptos, just like with derivatives. The made up wealth that is created, is actually backing the value of fiat. This would make sense why regulators seem so blind on goxdollars and tether.
I think yes, but only partly. I say that because cryptocurrency is in a different playing field compared to traditional money. And so, although it mostly interplay nowadays, there are still some differences and distinctions in terms of the factors that affects and keeps it value. Money is the more stable of them two, so it would be difficult to say that cryptocurrency is the one protecting fiat money. I think the better description is their interaction leads to better gains for both of them.