This is by no means substantially limited, how can the $ exchange rate slowly depreciate year after year? You also can't compare all existing cryptocurrencies with just dollars, in fact all countries have their own fiat with (again) unlimited printable amounts.
When the dollar's depreciation rate is too slow, perhaps the issuing company will create another Xfiat-pegged stablecoin. On the other hand, if fiat can really be set limited then the law of supply and demand applies in the crypto market. Banks don't have to print more.
Governments don't care about inflation in long run and they only want to reduce problems from short term inflation on their political career and their chances to be promoted in their career. With this mindset, it's hard to have well-thought economic policies from governments and their staffs.When the dollar's depreciation rate is too slow, perhaps the issuing company will create another Xfiat-pegged stablecoin. On the other hand, if fiat can really be set limited then the law of supply and demand applies in the crypto market. Banks don't have to print more.
They have every tool requires to make inflation and their citizens can not stop them. The coming tsunami of Central Bank Digital Currency (CBDCs) will make inflation of fiat currencies worse.
Stable coins are different stories as they operate on blockchains, with smart contracts. You will not have stable coins on Proof of Work network because stable coin companies have need to mint new supply for their stable coins when they want. Proof of Work blockchain can not help them to Mint new stable coins instantly like this.
Because they can mint new token supply when they want, their stable coin values can be not stable. We don't know when a stable coin peg will be de-pegged.
