Is there still hope? I'd say, yes. But it's going to take quite some time before the world gets used to BTC as an alternative currency. El Salvador might need to wait until the deal with the IMF comes to an end, to continue with its Bitcoin agenda. Patience is a virtue.
The deal between El Salvador and the IMF will last more than three years and we still don't know what will happen after that. Can El Salvador restore its economy or will it continue to fall into crisis?
So in my opinion, if they are forced to stop the whole bitcoin agenda, it means there is almost no hope for bitcoin adoption as a currency in their country in the future.
I believe that Nayib Bukele's own agenda behind El Salvador's "Bitcoin as Legal Tender" was to use it as a "fail-safe" in cause their economy crashes when he goes against the IMF, and/or as something he could use to force the IMF to offer better terms for loans.
Plus a shower-thought. The fact that El Salvador and IMF has agreed on "something" also makes me believe that El Salvador DID get better terms. Nayib Bukele would NEVER let go of what gives him negotiating power over the IMF.
Furthermore, their failure was not due to the IMF, but rather their failure to convince people to use bitcoin as a currency. Because according to reports, more than 90% of people do not want to use bitcoin instead of fiat. If they still want to pursue the bitcoin agenda, they first need to change their strategy and approach...
Failure or not, Bitcoin is Legal Tender in El Salvador. Everyone can use it without getting into trouble, and people or obligated to accept it.