This is exactly why stablecoins like USDT, TUSD, DAI, Libra, etc. won't gain much popularity. Cryptocurrencies and the blockchain technology were created with a scope - that we get rid of all the centralization and excessive control of authorities over the world. Corruption is at all time high level and transparency is nowhere near where we would like it to be. By adopting Bitcoin and blockchain & adiacent tech like smart contracts I'm sure we will make a much efficient & fair world.
Yes indeed, even though this is the risk, people still need stable coins because it is difficult at this time for Bitcoin and the like to be adopted. Actually bitcoin does not provide all solutions to overcome economic problems. It's just that it removes the function of centralized control. Other than that, i'm sure everyone is okay with that.