I wonder what could've been the culprit of Bitcoin's limited adoption within the country? Was it bad planning/execution? What if El Salvador rejected the IMF's demands? Would've it survived with Bitcoin as its sole currency? I mean, the government continues to buy BTC. At some point, it would've paid off its debt. That would've help turn it into a developed country in the long run.
What about other countries adopting BTC as legal tender? Is there still a possibility? Or is it "game over"?
I'm a bit pessimistic about implementing Bitcoin as a legal tender payment system, especially for other countries. Every country has its own official currency, so regulatory changes are necessary. Anything is possible, but if you look more closely at the concept of developing a country, an official fiat currency is crucial, making this issue much more complicated to look at from a personal perspective.
El Salvador is another possible reason to consider, as they have indeed succeeded. Despite the lack of an official currency or other reasons, El Salvador could still repay the debt and pursue other policies regarding the IMF issue. Fiat is indeed far superior for transactions, but its weakness lies in its ability to store value.