El Salvador Enhances Bitcoin Security Against Quantum Threats

The National Bitcoin Office of El Salvador, which oversees approximately 6,300 BTC in reserves, announced on Friday that it has distributed these holdings across 14 separate addresses to bolster security, particularly against threats posed by quantum computing. Led by pro-bitcoin President Nayib Bukele, the office claims to buy one BTC daily to augment the nation's strategic bitcoin reserve, which currently stands at 6,284 BTC—valued at over $682 million at present market rates. Until the recent division, the entire reserve was maintained in a single address. Following this announcement, the holdings were allocated across 14 new addresses, none exceeding 500 BTC, as shown in on-chain data. This move is said to align with best practices for Bitcoin management and is a proactive step towards addressing potential challenges from quantum computing. "By limiting funds in each address, we minimize exposure to quantum threats, as an unused Bitcoin address with hashed public keys retains its security," stated the office's announcement. Quantum computing presents a potential risk to Bitcoin’s ECDSA signatures, possibly compromising the network’s security; however, analysts from Bernstein noted last year that any significant threat to Bitcoin remains "decades away," as reported previously by The Block. Contrarily, claims of Bitcoin purchases reportedly conflict with a signed statement from the central bank president and finance minister, indicating that El Salvador's public sector has not acquired BTC since February, as per an IMF loan agreement. Neither Bukele nor his office has directly addressed the July IMF report, though they continue to announce daily purchases on X. Disclaimer: The Block is an independent media outlet providing news, research, and data. As of November 2023, Foresight Ventures has a majority investment in The Block. Foresight Ventures also invests in other companies in the crypto domain. Crypto exchange Bitget serves as a key LP for Foresight Ventures. The Block operates independently, delivering impartial and timely insights about the cryptocurrency sector. This article is for informational purposes only and should not be construed as legal, investment, or financial advice.