El Salvador is moving its Bitcoin from one big account to several new addresses to secure its Bitcoin reserves against future threats.
With growing concern over the rise of quantum computing, the country is acting proactively.
Let’s explore how and why El Salvador is safeguarding its Bitcoin and what this could mean for the future of digital security.
Why is El Salvador Moving Bitcoin?
The Bitcoin office notes that quantum computers could one day break the cryptography that protects Bitcoin and other systems like banking and email. When Bitcoin is spent, the public key is revealed, which could make it vulnerable to a quantum attack.
To reduce this risk, the country is spreading its reserve across many addresses, each holding no more than 500 BTC. This way, even if quantum tech becomes powerful enough to attack, only small portions would be at risk instead of the entire reserve.
Before, it used just one Bitcoin address for transparency, leaving keys exposed. Now, a public dashboard tracks many addresses, keeping reserves transparent and far more secure. On Friday, El Salvador moved its 6,274 Bitcoin (about $678 million) from a single address into 14 new ones.
Quantum Computing Poses Future Risk to Bitcoin
Project Eleven warns that over 6 million Bitcoin, about $500 billion, could be at risk if future quantum computers crack Bitcoin’s elliptic curve cryptography (ECC) keys.
Asset Manager BlackRock has also warned in a recent filing that quantum computing could one day make the cryptography behind Bitcoin and other digital assets ineffective.
Industry Leaders Are Staying Calm
Not everyone in the crypto industry is worried yet. Paolo Ardoino, Tether’s CEO, said that Bitcoin will likely develop quantum-resistant addresses, and everyone with access to their wallets will move their funds safely before quantum computers are a threat.
Michael Saylor, Strategy co-founder, has also dismissed fears that quantum computing poses a real threat to Bitcoin, calling it a marketing tactic to promote “quantum” tokens. He noted that even if powerful quantum computers existed, companies like Google or Microsoft wouldn’t release them because it would endanger their businesses and global systems.
Saylor emphasized that Bitcoin could simply be upgraded via software and hardware updates, and that phishing attacks are far more likely to put users’ funds at risk than quantum computing.
El Salvador shows how govts. are already thinking ahead about protecting digital assets – even though threats from quantum computing may be years away.
