El Salvador has accepted bitcoin as legal tender but still uses USD as the main currency, they dare not eliminate USD and only use bitcoin. Furthermore, bitcoin is no longer a legal tender in El Salvador as of February 2025.
More importantly, many surveys show that 93-95% of people do not want to use bitcoin as a currency, the majority still only use USD as currency in El Salvador. Therefore, the government does not need to ban people from using bitcoin as currency because most people do not want to use it that way anyway. Bitcoin is too volatile, transaction fees and transactions are sometimes slow, it is not suitable for daily domestic transactions.
Most people don't want to use Bitcoin as a currency because they're only interested in making money with it. Or simply because they don't know how to use it as such. El Salvador acted too quickly, and ultimately failed as a result. It's too early for Bitcoin to be adopted seriously as legal tender. Besides scaling issues, Bitcoin also needs to deal with volatility. It's why most countries are skeptical of it.
Unless these issues are solved, governments will only go as far as adding Bitcoin to their reserves (a store of value). The "Digital Gold" narrative, tells us exactly where this is heading into. One can only hope Bitcoin doesn't turn centralized in the long run. Just my two sats.