El Salvador Moves $678M Bitcoin: Quantum Security?
El Salvador Diversifies Bitcoin Holdings Amid Quantum Concerns
El Salvador has taken a proactive step to secure its national Bitcoin reserve, transferring 6,274 BTC (approximately $678 million) into multiple wallets on Friday. The move, confirmed by official sources and blockchain data, aims to mitigate potential risks from future quantum computing advancements.
Rather than holding the entire amount in a single address, the country distributed its Bitcoin across 14 separate addresses, each holding a maximum of 500 BTC.
Mitigating Quantum Computing Risks
According to the Bitcoin Office, this strategic decision is designed to minimize the impact of any breakthrough in quantum computing that could compromise cryptographic security. The rationale is that once Bitcoin is spent from an address, its public key becomes visible on the blockchain. This public key could become a target if quantum computers gain the capability to break elliptic curve cryptography.
El Salvador is moving the funds from a single Bitcoin address into multiple new, unused addresses as part of a strategic initiative to enhance the security and long-term custody of the National Strategic Bitcoin Reserve. This action aligns with best practices in Bitcoin…
— The Bitcoin Office (@bitcoinofficesv) August 29, 2025
Theoretical vs. Practical Threats
While concerns about quantum attacks on Bitcoin are valid, experts emphasize that the threat is currently theoretical. Existing quantum systems are not yet capable of cracking the 256-bit encryption used in Bitcoin private keys.
Michael Saylor previously stated that warnings about quantum attacks are often exaggerated, suggesting that Bitcoin's software and hardware could be upgraded if a real threat emerged.
Implications for Bitcoin Holders
El Salvador's approach highlights a simple, low-cost strategy for custodians and large Bitcoin holders to enhance security. By splitting holdings across multiple addresses, they can limit potential exposure if a single wallet is compromised.
Other governments, exchanges, and significant Bitcoin holders are likely monitoring cryptographic advancements and considering similar strategies to safeguard their assets. Codeum offers blockchain security consulting services that may be helpful to organizations seeking to understand and mitigate these risks.