El Salvador Moves $678M in Bitcoin to 14 Wallets Amid Quantum Security Concerns

     

Nation disperses holdings to minimize potential risks, though experts say quantum attacks remain a distant threat

El Salvador has redistributed its 6,274 BTC – valued at $678 million – into 14 separate wallet addresses as a precautionary step against the possibility of future quantum computing attacks. Officials said no single address now holds more than 500 BTC, reducing the potential fallout should cryptographic protections ever be compromised.

The country’s Bitcoin Office explained that once BTC is spent, its public key becomes visible and could theoretically be targeted by quantum computers if the technology advances far enough. Blockchain data confirmed the onchain transfers were executed Friday.

Quantum threat seen as premature

While the move was welcomed as proactive, researchers stress that the threat remains purely theoretical. Project Eleven, a quantum security firm, noted that current quantum machines cannot crack Bitcoin’s 256-bit private keys – the most they’ve managed so far is breaking 3-bit encryption. Industry leaders, including Michael Saylor, have dismissed fears as overblown, stressing that if quantum risk ever materializes, the Bitcoin network could adapt through hardware and software upgrades.

IMF tensions linger over Bitcoin strategy

The relocation of funds comes as El Salvador remains under scrutiny from the International Monetary Fund. The IMF reported in July that the nation hasn’t made any new Bitcoin acquisitions since February, despite ongoing claims of purchases by El Salvador’s Bitcoin Office.

In December 2024, the country secured a $1.4 billion IMF funding package tied to scaling back its Bitcoin adoption – a condition that remains a point of contention between the government and international lenders.