> The only real use case that makes sense to me is giving people in developing countries access to a stable currency they can actually hold, trade, and invest in, meaning USDT or USDC. Outside of that, as an EU/US citizen I don't see why I'd hold stablecoins instead of fiat

The logical conclusion of this train of thought (which I agree with) is that people who heavily invested in crypto may significantly benefit from weakening strong currencies and institutions. Make of that what you will.