El Salvador has moved its Bitcoin holdings into 14 different wallet addresses in an effort to strengthen protection against possible quantum computing threats.
According to the country’s Bitcoin Office, which announced the move on X this Friday, distributing funds in smaller chunks helps reduce potential damage if quantum-powered attacks ever become viable. Each new address reportedly contains no more than 500 BTC.
The office emphasized that Bitcoin addresses become more vulnerable after being used in a transaction, as the public key is exposed. This detail could one day be exploited if quantum computers advance enough to break elliptic curve cryptography (ECC).
Research firm Project Eleven previously estimated that over 6 million BTC — valued at roughly $650 billion — could be at theoretical risk if such cryptographic defenses were compromised.
On-chain transfers confirm redistribution
Prior to the shuffle, El Salvador’s 6,274 BTC (around $678 million) were held in a single wallet. Blockchain records now show the funds dispersed across 14 new addresses as of Friday.
Quantum threat not yet a reality
While the precautionary measure was applauded by observers, Project Eleven also pointed out that the quantum threat to Bitcoin remains distant. A Bitcoin private key uses 256-bit security, whereas no quantum system has successfully broken even a 3-bit key using Shor’s algorithm so far.
MicroStrategy’s Michael Saylor has also dismissed quantum fears in the past, suggesting that in the unlikely event it does become an issue, Bitcoin’s developers and hardware producers would simply roll out the necessary software and hardware upgrades.
As he explained: “If quantum ever posed a real risk, the solution would be the same as with Microsoft, Google, or the U.S. government — upgrade the hardware, upgrade the software.”
Tensions with the IMF remain
Despite El Salvador’s ongoing Bitcoin advocacy, questions persist over its commitment to large-scale purchases. The IMF stated in July that the country has not acquired new Bitcoin since February.
The Bitcoin Office has not directly responded to those claims but continues to post about purchases on social media.
In December 2024, El Salvador reached a $1.4 billion agreement with the IMF, which reportedly included provisions to scale back its Bitcoin strategy. However, the exact conditions of the deal remain contested between the government and the fund.
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