El Salvador splits 6,274 BTC into 14 wallets
El Salvador has redistributed its entire 6,274 BTC reserve — valued at around $678 million — across 14 new wallet addresses, each capped at 500 BTC.
The country’s Bitcoin Office said the move was made to reduce the impact of a potential quantum computing attack, reports Cointelegraph.
Once funds are spent from a Bitcoin address, its public keys become visible, creating a theoretical vulnerability if quantum computers advance enough to crack elliptic curve cryptography (ECC). By splitting holdings, El Salvador aims to minimize exposure and boost resilience.
Experts say quantum threat still distant
While the reshuffle drew praise as a prudent step, most experts argue the quantum threat is still years away. Project Eleven, a quantum research firm, estimates more than 6 million BTC — $650 billion — could be at risk if quantum computing ever reaches the scale to break ECC. Yet, no machine has cracked even a 3-bit key using Shor’s algorithm, far from the 256-bit protection Bitcoin employs.
Michael Saylor, executive chairman of Strategy, dismissed the concern as “hype,” stressing that any credible threat would trigger hardware and software upgrades across the Bitcoin network, much like Microsoft or Google push regular security updates
IMF tensions overshadow Bitcoin strategy
The Bitcoin move also comes as El Salvador faces scrutiny from the International Monetary Fund (IMF). A July report claimed the country has not made new BTC purchases since February, conflicting with regular updates posted by the nation’s Bitcoin Office. El Salvador secured a $1.4 billion IMF funding deal in late 2024 in exchange for scaling back its Bitcoin program, though terms remain under dispute.
The redistribution highlights that despite international pressure, the government continues to position Bitcoin as a core sovereign asset, even experimenting with advanced custody strategies to secure its holdings.
Recently we wrote that Metaplanet, a leading Japanese investment firm, has approved a plan to raise 180.3 billion yen ($1.2 billion) through an overseas share issuance, with $835 million allocated for Bitcoin purchases.
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