Growing up in San Antonio, we used plain cotton towels for hot pans and meat. In my experience, the real risk isn't the towel itself but how you wash it later. Your mileage may vary, but washing in hot water with bleach kills most germs. Take this with a grain of salt, but the heat from the meat might even help clean the towel surface. I've never had issues as long as I wash towels right away. It's one of those things that seems scary until you learn the details.
My grandma's kitchen towels have handled hot pans for 40 years and we're all still here. It's funny how some stuff we just accept as safe because it always has been.