>Outside of that, as an EU/US citizen I don't see why I'd hold stablecoins instead of fiat.
because fiat can be taken away from you.
Why do you think stablecoins cannot be taken away? There are already many cases where eg Tether got a court summons and handed over the contents of certain wallets to the local authorities.
Hate to break it to you, but anything can legally be taken away from you by the justice system. And fighting the government can put you in prison, too.
It's just LARPing.