I am not against the fiat world because it is traced and all, that is fine and understandable, I am against it because governments use fiat to make themselves richer while poor people are still poor and they can just print money and make us even poorer while giving that printed money to their bribers.
I like the "regulated but can't be controlled" part! It it very possible with well decentralized cryptocurrency. People from current national governments could even be part of the governance of well decentralized cryptocurrency without centralizing or controlling the coin/system in anyway. A well built decentralized system would require merit and fairness(in anonymous and randomize model) for proper governance.
If government officials provide the best skilled people for the coin governance, a fair & foolproof system will definitely picked them fairly. They won't be picked based on privileges or for being government officials. Regular people will be picked by the system if they have the best skills. The good thing about this model is that it will be hard to bribe or break rules/laws without getting caught and punished