It's not meant to represent something decentralized. It's just a convenient value tool for people to hedge price drops and have these stablecoins be transferred to other exchanges for arbitrage opportunities.

With fiat you are forced to verify yourself, and it can't be transferred to exchanges in a quick fashion with how you rely on banks to process these transactions, which can take days in some cases.

I'm not a fan of stablecoins either, but there are enough traders globally who are actively using them in their advantage on a daily basis. As long as people can use them without verification they will remain popular.