That's what we have tokens for that can run on top of Bitcoin. USDT is the perfect example of how you can create money that doesn't exist, and it can be done in more ways than just one. It grants you the security of Bitcoin's immensely powerful network, and you have the possibility to issue tokens subject to inflation, or even back them by whatever you think it should be backed by, so I don't really see an issue here.

In the end, people advocating for freedom of choice shouldn't want fiat to be replaced or killed off, because that's not different from governments trying to kill off what they don't like.