I knew Bitcoin as legal tender wouldn’t work long term because most people don’t know how to use it. This is similar to people paying their debt in Pennies to piss off the impound yard or ticket agencies. But they have to take it since legal tender means a debt owed.
Making bitcoin legal tender I assume was more for publicity than actually solving any issues. And I wonder how many actual debts got paid by bitcoin, probably not many.
Most people these days leave their BTC in the hands of a custodian (centralized entity). They only know how to buy/sell Bitcoin. But not how to use it as true, P2P digital cash. It's no wonder why governments are only interested in building Bitcoin reserves. Not spread BTC's use as a currency.
El Salvador was the exception because it wanted to "break the ice". Turns out its experiment failed, as most people claimed the rewards from the Chivo Wallet and forgot about the rest. Not even a mandatory use of BTC did any good. The odds of other countries following El Salvador's footsteps are slim. But who knows? Maybe things will change in the future as Bitcoin finally addresses its scaling issues. For what I've learned, anything's possible in crypto land. We'll see what happens in the long run...
According to information from Arkham, the Salvadoran government has earned more than US$200 million on its investments -
https://intel.arkm.com/explorer/entity/el-salvador. I don't think their experiment has failed, as some countries are unable to invest pension fund assets properly, and their value declines over time due to inflation. The Salvadoran government has shown the whole world that Bitcoin is an excellent investment asset. The fact that Salvadorans do not use Bitcoin is not the government's problem. The only thing that should concern the Salvadoran government is to start complying with the IMF's requirements, as they risk losing cheap credit.