Arguably any fiat-collateralised stablecoin is ipso facto centralised and trusted (someone needs to 1) issue the coins only against fiat collateral and then 2) hold onto that collateral reliably and 3) return it upon presentation of the coin), and at step 3 they can always say "no, we won't give it to you".
Why couldn't a privacy focus coined, like Monero, be a stablecoin?
You don't need to see where the coins are and move to promise $1 of going for every coin.
Your point has nothing to do with fiat.
It applies equally well to a fiduciary coin with a promise that 1 gcoin = 1g of gold or whatever.