I don't think that's accurate. Where have you read that they are using USDT?

Moving things to bitcoin with government registered wallets makes tracking a lot easier. Should make basic things like taxes and tariffs easier to enforce. Could possibly do a lot to shrink the under the table grey market in El Salvador.

Of course it could also allow the government to do worse things like backdoor wallets and confiscate crypto.

> Moving things to bitcoin with government registered wallets makes tracking a lot easier. Should make basic things like taxes and tariffs easier to enforce.

There are lots if wallets not registered with the El Salvador government, and it will be impossible for the government to distinguish those that are genuinely foreign from unregistered wallets used by people ot for purposes nominally subject to El Salvador’s laws.

So, no, it won't make tracking any easier, nor wil it make taxes and tariffs easier to enforce generally.

My understanding (and admittedly I haven't read closely) is that this is a move to supporting transaction in BTC using an existing Salvadoran electronic payment system. In that case, it probably does reliably give increased visibility compared to cash payment.