El Salvador was under pressure from the IMF AFAIK, part of the loan deal required them to stop recognizing Bitcoin as legal currency so they could get the funding they needed for national development.

Even though it’s no longer a legal currency in their country, nothing has really changed, they’re still accumulating Bitcoin.

Honestly, it doesn’t matter much whether you call it legal tender or how you tax it. What really matters is that demand keeps growing. That’s the true sign of success, real adoption. And we don’t need Bitcoin to be a legal currency to achieve that.