This sort of permission policy would cause a horrible administrative task for the ones trying to keep the SharePoint site nice and tidy. Yes, it is possible to add the kind of unique permissions that only a folder within a library is visible to a user, but none of the files is visible. I don't want to get into how - you simply do not want to have unique permissions for each file in a library. You don't.
The existing answers detail how you can add a view for this, but technically users would still have permissions to the files, and to any other possibly existing views which may directly list the files in that particular location. Therefore I would not recommend hiding items with filter-options of views.
Instead of user permission chaos, you indeed should consider some of the suggested ideas from the comments:
- In the library, set that users can only see the files uploaded by them
- Use Drop Off Library, which lets users to "drop off" their files to a library, which are then automatically moved to their intended location (based on e.g. metadata or whichever properties you prefer)
The mentioned are the most simple, yet powerful ways to do this OOTB. I'd go with the 2nd option.