If Bukele is an idiot or not, only time will tell. The fact is that he took a big risk when investing in bitcoin during a bearish market, and now luck must be on his side in order to not finish as an idiot on the story. As he is using fiat and keeping bitcoins untouched, he is creating more debt for the country through loans, while betting bitcoin can overcome the bearish scenario soon, so he can finally pay the debt created with profit from bitcoin investment.
What risk? There is no risk when you buy bitcoin. Only fools who don't know they need to wait for selling, if ever.
Guess what, of all the bitcoins they have bought, apparently, they have sold NONE. They are holding, this is zero risk, unless you believe the rhetoric that bitcoin is going to zero, repeated every year and actually going the opposite direction...
What El Salvador is doing is building a sovereign reserve, better than gold without the outrageous custody costs... In a future where most of its income is in bitcoin, i suppose they will start using/selling some, but currently they have plenty of fiat to burn, no need to spend precious bitcoin.
It is a normal strategy ("HODL") any bitcoiner should have. He is no fool unlike the rest of the politicians worldwide, at least regarding Bitcoin. However no country can ever develop with crime, so that other part is also correct imo no matter what others say. I know how crime destroys an economy very well, write it down: if they keep walking this path, El Salvador will become the Switzerland of the Americas.