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I’d say of course a government can hold coins. Precisely as they used to have coffers full of gold.
Holding btc is fine and necessary, since all governments need reserves. However it is also true that btc has to be the de facto money used as well. The news I hear is that that is slowly happening.
It takes time, as I see it. We can’t expect these changes to happen instantly. Bukele, as far as I’ve seen, seems to be steering things in the right direction, especially concerning safety.
I’m from Brazil and much like ES, crime is endemic and even fostered by the government. Bukele is doing the right thing. Once a country can have at least that level of safety, it’s also easier for people to care about the money they use