Yeah but this is a monetary settlement with an agreed interest rate, a lawnmower being stolen would return you the lawnmower plus a compensation for any damages caused and a fee for the theft. Here Bitcoin was respected as a valid way of money with his own market value and indeed not forced to liquidate the debt in fiat as if it was monopoley money in the eyes of the state, so overall is a positive. It is mentioned that at least in Spain this hasn't happened before.
This is because bitcoin and cryptocurrency entirely isn’t banned or strictly regulated like the other countries. Although it cannot be use as legal tender which is the Euro or use as an international transaction currency. But the individual payment if agreed between two people is not frowned upon. So base on the law it was logical to have the debtor pay back in bitcoin.
The sweetness in this is a bitcoin stays the same and doesn’t devalue like the fiat currency. And the use of it for loan repayment can solve many problems associated with fiat