El Salvador has quietly redistributed its Bitcoin reserves into 14 separate wallet addresses — a move its Bitcoin Office says is aimed at reducing potential risks from future quantum computing attacks.
🪙 What Changed
El Salvador previously held 6,274 BTC (~$678M) in a single address.
On Friday, those funds were split into 14 new wallets, each capped at 500 BTC.
The Bitcoin Office explained: once funds are spent, their public keys are revealed, making them theoretically vulnerable to quantum cracking down the line.
Why Quantum Matters (Eventually)
Project Eleven estimates 6M+ BTC (~$650B) could be at risk if elliptic curve cryptography (ECC) were broken.
But for now, the risk is low: no quantum computer has cracked even a 3-bit key, far from Bitcoin’s 256-bit standard.
Michael Saylor (MicroStrategy) dismissed the panic in June:
“If quantum becomes real, Bitcoin just upgrades — like Microsoft, Google, or the US government do with software.”
IMF Tensions Still in Play
An IMF report in July claimed El Salvador hasn’t bought new BTC since February, raising doubts over its official narrative.
Bukele’s Bitcoin Office continues to post about ongoing purchases, but hasn’t directly addressed IMF claims.
El Salvador previously secured a $1.4B IMF funding package in late 2024, conditional on scaling back Bitcoin initiatives — a source of ongoing friction.
🧩 The Takeaway
El Salvador’s quantum-proofing move may be more about optics than urgent necessity, but it highlights:
Nation-states now treating Bitcoin custody with sovereign-level security strategies.
Quantum remains a future concern, not an immediate threat.
IMF disputes suggest El Salvador’s Bitcoin experiment is still politically and financially contested.
Do you think El Salvador’s move is forward-thinking risk management, or just a symbolic flex to signal long-term conviction in BTC?