Treasury backed Stablecoins: Do they advance or directly conflict with the narrative behind Crypto?

Recently began thinking about the rising popularity of treasury backed stablecoins and whether they legitimately advance the narrative of Bitcoin or not.

If Bitcoin is to be a means of transacting/storing value outside of the system that has been created to bolster FIAT currency with the guidance of central banks, then are we allowing those same risks to permeate Bitcoin by using stablecoins backed by treasuries??

Are we allowing exactly what we were trying to break away from, to become the building blocks of Bitcoin?

Does this create the risk that a failure of the dollar could negatively impact Bitcoin through a complete failure of the stablecoins backed by treasuries?

Please debate, I’m interested to hear others takes on the subject.