Key Notes
- El Salvador’s Bitcoin Office has announced the redistribution of its BTC holdings.
- This comes as concerns of quantum computing take the stage in the industry.
- Quantum computing threats may not be full-blown in the foreseeable future.
El Salvador has decided to redistribute its Bitcoin (BTC) holdings to multiple addresses. To this end, it has announced that nearly $678 million worth of its BTC holdings will be going to different wallets. The Central American nation made this decision amid growing concerns about the potential threat posed by quantum computing to digital assets, especially Bitcoin.
El Salvador Attempts to Outpace Quantum Computing
Noteworthy, El Salvador holds 6,274 BTC in its reserve, and this large stash is worth $678 million based on the current market price. At the time of this writing, 1 unit of Bitcoin was worth approximately $108,655.94, corresponding with a 1.14% drop in value over the last 24 hours.
According to a post on X by the country’s Bitcoin office, the Nayib Bukele-led country redistributed this 6,274 BTC reserve into 14 wallets, with each capped at 500 BTC. This is a significant shift from the previous scenario, where El Salvador held this entire holding in a single address. Having its Bitcoin in one place and not one of the best crypto wallets is considered a risk in itself.
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
For context, the nation’s Bitcoin was predisposed to evolving cryptographic risks, particularly this season that the matter of quantum computing is trending. Officials of the nation strongly believe that diversifying wallets has the potential to preserve transparency. Ultimately, this is a move that could reduce the potential impact of a quantum-based breach.
“Limiting funds in each address reduces exposure to quantum threats because an unused Bitcoin address with hashed public keys remains protected,” the El Salvador officials stated. “Once funds are spent from an address, its public keys are revealed and vulnerable. By splitting funds into smaller amounts, the impact of a potential quantum attack is minimized.”
Quantum Computing and Its Effect on Cryptocurrencies
The subject of quantum computing has become a hot trend in the digital asset sector. These are extremely powerful computers that are capable of handling some of the most complex challenges in the world today. Top organizations like NASA and some of the largest companies like ExxonMobil, Alphabet, and IBM currently use such computers.
Inasmuch as they hold several benefits, it is worth noting that they could be harmful to cryptocurrencies. A few months ago, Craig Gidney, a Quantum AI researcher at Google, clearly stated that Bitcoin’s encryption is faced with growing risks due to the rapid advancements in quantum computing.
Furthermore, he explained that breaking RSA encryption, a public-key algorithm for the encryption and decryption of data, has now become easier. Now, it requires 20 times fewer quantum resources than was previously estimated. However, BTC does not utilize RSA encryption but Elliptic Curve Cryptography (ECC).
This ECC is also vulnerable to Shor’s algorithm, which is capable of factoring large numbers and solving logarithmic problems. These features are fundamental to public key cryptography. At the same time, analysts and top players in the crypto industry believe that quantum computing, like Google Willow, is still far from negatively impacting digital assets.
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Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.