There’s clearly demand for such a concept, and Tether isn’t the only “stablecoin” in the game (see: TrueUSD and Maker).

You forgot to mention bitUSD and bitCNY that is backed at least 2X with BTS collateral ! And it works for years (eternity in cryptospace)
And the most important thing you trade them in a decentralized DEX environment and not on the risky centralized exchanges !!!

https://wallet.bitshares.org/#/market/USD_BTS
https://wallet.bitshares.org/#/market/CNY_BTS