Bitcoin adoption has failed to take off within the nation of El Salvador because its regulatory framework is largely unfavorable towards cryptocurrencies.
I don't expect it to work for cryptocurrencies at large because that's the name that include every other shitcoins together under the same umbrella being crypto, we are dealing with bitcoin and bitcoin alone here, what sort of regulatory framework could be more favourable than the government giving the opportunity for both bitcoin and fiat to serve as means of payment, rendering free chivo wallet with some coins to have a good start up, allow every businesses to accept bitcoin as payment media without leveraging embargoes on them.
At this time, there are no regulations in place that recognize cryptocurrency as legal tender or deal with taxation and licensing of businesses related to Bitcoin.
Cryptocurrencies are not legal means of payment in El-Savador, bitcoin is the only cryptocurrency accepted as a legal tender in El-Savador
In addition, due to the lack of protection through financial regulators like the Central Bank or Securities Commission, El Salvadors citizens are reluctant to invest in digital currencies which present many risks including fraud and volatility.
When we are talking about bitcoin Which is a digital decentralized currency you don't made mention of banks here, they are centralized, the volatility is what bitcoin price is made of, not a misfortune if you study bitcoin well, you will understand it operates both on market demand and supply.