So what's the lesson here? Maybe Bitcoin doesn't work at the State level.
It has only been tried in one country and because of that we should not jump into the conclusion that it doesn't work at state level.
If another country decides to thread this path, they can learn from the mistakes and the experience of El Salvador and make sure not to repeat those mistakes to see bitcoin work.
Another country with better economical experience and financial understanding can make it work.
Also we need to realize that El Salvador didn't "halted" their bitcoin movements, it's still a legal tender there, don't know where OP came up with halted, because legal tender status for bitcoin still exists, and they still have bitcoin right now at a governmental level, they are just not buying more.
To be fair, when you need a loan, if you are buying bitcoin, then the people who give you loan have a right to tell you "first stop buying bitcoins" lol. In the end, El Salvador wasn't expected to be the greatest big power in the world, they just needed their nation to do a bit better, or hoped so, and while they are not that much better, they are also not worse, bitcoin basically did nothing for them, no positive nor negative. That's what I take away from this.