This seems to be a way of saying that, unlike USD which has a controlled exchange rate on the public/legal markets, you can't just pay your bills in BTC because

This seems to be a way of saying that, unlike USD which has a controlled exchange rate on the public/legal markets, you can't just pay your bills in BTC because the person you are paying has no way to determine what the BTC are worth, so you have to covert them to official currency. What other decision is possible? To have an official govertment exchange rate posted for banks to use? That would be insane, with BTC's volatility.