El Salvador Splits $678M Bitcoin Reserve to Mitigate Future Quantum Threats

News Flash 2025-09-19 19:40

El Salvador has redistributed its national Bitcoin reserve, worth approximately $678 million, into 14 separate addresses as a precautionary measure against potential future quantum computing threats. Previously held in a single address, the 6,274 BTC have been divided into wallets each containing up to 500 BTC. This "shard and spread" strategy aims to limit potential losses if any single address is compromised. The move comes despite experts agreeing that quantum computers are not yet capable of breaking Bitcoin's cryptography. However, El Salvador's National Bitcoin Office (ONBTC) emphasized the importance of preemptive action, citing the potential future risk of quantum computers reversing public keys to their corresponding private keys. By splitting the funds, El Salvador aims to protect its Bitcoin holdings while maintaining transparency through a public dashboard. This strategic decision reflects El Salvador's commitment to safeguarding its Bitcoin assets and positions the country as a forward-thinking player in the cryptocurrency space. While the quantum threat remains distant, the move underscores the importance of robust custody practices and could set a precedent for other nations and institutions.

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