El Salvador splits bitcoin reserve into multiple wallets to protect from quantum attacks

Editorial

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The Central American country owns roughly half a billion pounds worth of the cryptocurrency, having introduced it as legal tender in 2021.

The country’s Bitcoin Office says that moving the funds from a single bitcoin address into multiple new, unused addresses will “enhance the security and long-term custody of the National Strategic Bitcoin Reserve”.

Quantum computers have the theoretical capability to break public-private key cryptography. When a bitcoin transaction is signed and broadcast, the public key becomes visible on the blockchain, potentially exposing the address to quantum attacks that could discover private keys and redirect funds before the transaction confirms.

To protect against the threat, the reserve is being redistributed into multiple addresses, each holding up to 500 BTC.

“Limiting funds in each address reduces exposure to quantum threats because an unused Bitcoin address with hashed public keys remains protected,” says the Office. “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.”