El Salvador splits $678M Bitcoin across 14 wallets to reduce quantum risk

El Salvador has redistributed its Bitcoin reserve holdings into 14 caller wallet addresses arsenic a precaution against imaginable quantum computing threats.

“By splitting funds into smaller amounts, the interaction of a imaginable quantum onslaught is minimized,” El Salvador’s Bitcoin Office said successful an X station Friday, adding that each Bitcoin (BTC) code holds up to 500 BTC.

The Bitcoin Office explained that erstwhile funds are spent from a Bitcoin address, its nationalist keys are revealed and susceptible — making it a people for quantum computers to ace — should the exertion germinate into a important menace successful the future.

Source: Nick Neuman

More than 6 cardinal Bitcoin — worthy astir $650 cardinal — could beryllium astatine risk if quantum computers go almighty capable to ace elliptic curve cryptography (ECC) keys, quantum probe institution Project Eleven said successful April.

Onchain transfers person been made

El Salvador antecedently held its 6,274 Bitcoin stash (worth $678 million) successful a azygous address, but blockchain information shows those funds were transferred into 14 caller addresses connected Friday.

El Salvador’s Bitcoin transfers into 14 caller Bitcoin addresses.Source: Mempool.space

Quantum isn’t a worry, for now

While El Salvador’s determination was praised by manufacture pundits, Project Eleven noted that quantum computing is inactive acold distant from being susceptible of hacking Bitcoin. A Bitcoin backstage key contains 256-bits, and nary quantum machine moving Shor’s algorithm has managed to adjacent ace a 3-bit cardinal yet.

Michael Saylor, the designer down Strategy’s Bitcoin playbook, said quantum computing’s menace to Bitcoin is specified hype successful June, adding that if it ever became a superior issue, the protocol’s halfway developers and hardware manufacturers would instrumentality fixes.

“The reply is: Bitcoin web hardware upgrade, Bitcoin web bundle upgrade, conscionable similar [how] Microsoft, Google, the US authorities upgrade.”

El Salvador inactive entangled successful IMF drama

El Salvador’s Bitcoin buys person been called into question aft an International Monetary Fund study successful July claimed that the Central American state has not made immoderate new Bitcoin purchases since February.

Related: El Salvador’s Bukele reacts arsenic $1B Bitcoin holdings stake increases connected Kalshi

The country’s Bitcoin Office hasn’t straight addressed the claims and has continued to station astir its Bitcoin purchases connected X.

El Salvador secured a $1.4 cardinal backing deal from the IMF successful December 2024 successful speech for scaling backmost its Bitcoin initiatives, among different conditions — though the presumption look to beryllium nether quality betwixt the 2 parties.

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