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.
Sanitough you are right, IMF are not a friend of cryptocurrency so any country that are friends to cryptocurrency they find it hard to assist them without a condition that will make them leave cryptocurrency and since El Salvador supports Bitcoin so much IMF giving them loan will actually come with a condition and that is exactly what happened they gave a condition to El Salvador and they followed because they are in need of the loan.
Now they have gotten the loan and the condition was for them to stop Bitcoin as a legal tender in there country and they have done that, however that didn't stop them from accumulating Bitcoin or there citizens from accumulating and holding more Bitcoin, we really actually don't need Bitcoin to become a legal tender for it to grow, what we need is for Bitcoin to be accepted by Many and it has already gotten that in El Salvador, a lot of El Salvador citizens are now accumulating and holding Bitcoin they are deeply involved in Bitcoin investment and this are part of what is needed for Bitcoin growth.