It's money that is monetizing. This stage is obvious and should be expected. And most people have always used KYC exchanges for most of their purchases. If you want to be a doomer about that go ahead, but there are a lot of great tools for getting non-KYC coins.

And I don't have any idea what you mean by "fiat backing." Gives the feeling of something you suspect sounds edgy, when really it's meaningless. Just sayin. 

 The  fiat backing in means they're going to put Bitcoin in Bitcoin reserves and use that to back printing money.