The biggest threat to fiat money is inflation. Inflation can be cured by injecting wealth into the economy and by that rising enough belief to keep the system afloat. This can be done for instance by occupying foreign countries and by that opening up new markets to the companies that are essential to the economy. Or this can be done by loose regulations with the derivatives markets, that will create wealth out of thin air and high hopes.
Can it be that pumping of the crypto markets is just another financial shenanigan created to keep the old system afloat?
They are creating new wealth out of nothing with cryptos, just like with derivatives. The made up wealth that is created, is actually backing the value of fiat. This would make sense why regulators seem so blind on goxdollars and tether.
No, I do not think that the cryptocurrency was created by the states to protect their paper money from inflation. States can not control the location of capital, which is invested in cryptocurrency, in their country. Because of this, the Chinese government stated that the cryptocurrency harms the country's economy because it contributes to the uncontrolled withdrawal of funds from the state.