I don't have the source, it looks like it was private comms between the bank and the customer, reposted by @CarlBMenger .

He says "Bitcoin payment", but it looks like it was a fiat payment where the source of the fiat was bitcoin savings, because there is no way the bank would have even considered Bitcoin "money" or something they would be open to accept directly.

This is the kind of stuff that gets in the way of Bitcoin adoption. In non-UK countries people can use Bitcoin spot ETFs as a workaround, as terrible a workaround as it is, but potentially meeting the short(ish)-term need of saving for a deposit (known as a downpaymnt in the US). It sends the message: if you want to save money for a big purchase, buy stonks and the S&P 500.

I guess if you want to borrow (= short) fiat, which is to say benefit from fiat, you have to play by the rules of its masters. As also El Salvador's recent move shows. But if this was a cash purchase and not a mortgage application, the state of things is really bad and we have reasons to be angry.