The Central American nation, which currently holds 6,274 BTC, transferred its holdings from a single address into 14 separate wallet addresses. Each address now contains up to 500 BTC, according to an announcement from the country’s Bitcoin Office.
Why El Salvador Took This Step
The move aims to reduce potential vulnerabilities associated with quantum attacks, which experts warn could eventually threaten the security of elliptic curve cryptography (ECC)—the cryptographic foundation behind Bitcoin addresses.
“By splitting funds into smaller amounts, the impact of a potential quantum attack is minimized,” the Bitcoin Office stated on X.
Interesting (and great!) to see large/public BTC holders taking proactive steps to protect against future quantum threats. El Salvador continues to be a good model for how nations should manage bitcoin treasuries.
When Bitcoin from an address is spent, its public key becomes visible, making it theoretically susceptible to attacks if quantum computing technology advances significantly.
Is Quantum Computing Really a Threat?
Currently, quantum computers are far from capable of cracking Bitcoin’s 256-bit private keys. A report from Project Eleven, a quantum research firm, indicated that no quantum computer has successfully broken even a 3-bit key using Shor’s algorithm.
Industry leaders remain confident in Bitcoin’s resilience. Michael Saylor, a leading Bitcoin advocate, dismissed the quantum threat as overhyped earlier this year:
“If quantum computing ever posed a real risk, Bitcoin’s protocol and hardware would undergo necessary upgrades—just like major tech platforms do,” Saylor noted.
IMF Concerns and Bitcoin Strategy
The move comes as El Salvador continues to face scrutiny from the International Monetary Fund (IMF) regarding its Bitcoin strategy. In December 2024, the country secured a $1.4 billion IMF funding deal, which reportedly included conditions to scale back its Bitcoin initiatives—though the terms remain disputed.
For now, experts agree that quantum risk is a future challenge, not an immediate one, but El Salvador’s proactive approach underscores its commitment to protecting its Bitcoin reserves.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.
