El Salvador Redistributes Bitcoin Reserves in Face of Quantum Threat

• El Salvador Protects Bitcoin Reserves Against Quantum Computing
• BTC reserves divided into 14 wallets for security
• Public dashboard shows addresses of the national Bitcoin reserve

El Salvador, a pioneer in adopting Bitcoin as legal tender, announced a strategic measure to strengthen the security of its reserves amid concerns about advances in quantum computing. The government revealed that its 6.284 BTC, valued at over US$682 million, were redistributed to 14 different addresses.

Until then, all funds were concentrated in a single address, a practice often highlighted as risky by security experts, as it exposed public keys for long periods. With this redistribution, the country seeks to reduce vulnerabilities and protect its digital treasury in the long term.

The National Bitcoin Office, linked to President Nayib Bukele, explained that the action is part of the "National Bitcoin Strategic Reserve" and follows best custody practices. According to the agency, the fragmentation of funds is also a preemptive response to the growing risks of quantum computing.

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

Quantum computers use "qubits," capable of operating in multiple states simultaneously, allowing them to process data at exponential speeds. This technology poses risks to blockchains, as Shor's algorithm, developed in 1999, could theoretically breach the security of ECDSA, the basis of Bitcoin's public and private key system.

Experts point out that addresses whose public keys have already been exposed in transactions are the most vulnerable. When a Bitcoin transaction is broadcast, the public key is recorded on the blockchain, opening the possibility that, in the future, a quantum computer could derive the corresponding private key and move funds even before the transaction is confirmed.

To mitigate this threat, El Salvador divided its reserves into unused addresses, each containing a maximum of 500 BTC. This way, public keys remain hidden, significantly reducing exposure to potential attacks.

The government also launched a public dashboard that allows you to track all addresses related to the national Bitcoin reserve. This initiative aims to balance security and transparency, ensuring that the public and the global community have access to information about the allocation of funds without relying on a single centralized address.