This is as nonsensical as saying "flying spaghetti monster can also be loaned". Attaching a number to a name and write some letters next to it (BTC or FSM) has nothing to do with loans.
But, a flying spaghetti monster isn't easy to transfer neither to verify, let alone to divide it. It doesn't meet the requirements to be money. However, if we found another object or some sort of global ledger where we can sign our dues (even if those numbers don't represent anything), we can use it as currency.
This is Bitcoin. It doesn't represent
ANYTHING. It only gives us an idea of who's paid their dues. If lots believe it can work as money, because it meet the requirements to be one, above and beyond, then who're you to claim it doesn't?
Back to the fiat currency: It represents only a title that is recognizable by the state. Do you agree that a person can use a medium of exchange whose usage isn't being forced?
But you are not transferring flying spaghetti monster just as you are not transferring bitcoin. Remember, they are non-existent. You are just attaching numbers to address. Payment means that you transfer SOMEthing. If there is NOthing transferred then obviously no one is paid their dues. So, there' is no money. There are only numbers attached to address. Numbers are concept about quantity of things represented with symbols. When symbol "5" is used that means there are more things than when symbol "1" is used. So, when a specific symbols is attached to an address you have to show the thing. If you are not able to to that the thing is non-existent and that what is attached to the address means nothing. In fact, it's fake data.