TLDR
- El Salvador split 6,274 Bitcoin across 14 wallets to reduce risk from future quantum attacks.
- Each wallet holds a maximum of 500 BTC to prevent single-point crypto vulnerabilities.
- Wallet diversification maintains transparency via a public blockchain dashboard.
- The country’s BTC portfolio has grown 124%, now valued at $644 million.
El Salvador has moved its entire Bitcoin reserve—worth $678 million—into 14 separate wallets. The change is designed to reduce the country’s exposure to threats from quantum computing, which experts say could compromise digital assets in the future. Officials confirmed that the move maintains transparency while improving the security of the national cryptocurrency holdings.
Bitcoin Reserve Split into 14 Wallets
The government’s Bitcoin Office shared that El Salvador’s 6,274 BTC, previously held in one wallet, has now been split across 14 addresses. Each wallet holds no more than 500 BTC, a step taken to minimize the risk of losing large sums in a single breach.
“By splitting funds into smaller amounts, the impact of a potential quantum attack is minimized,” the office stated in a post on X. The redistribution was made public through a blockchain dashboard, which allows anyone to view the wallet balances. This approach ensures the country keeps its crypto strategy open while focusing on stronger protection methods.
Quantum computers could eventually crack current cryptographic systems. Bitcoin addresses remain secure until a transaction is made, after which the public key becomes visible. Attackers with access to powerful quantum systems could then target these addresses before the transaction is confirmed.
Quantum Risk Spurs Preemptive Measures
Quantum computing has not yet reached the stage where it can break Bitcoin’s encryption, but experts warn it is only a matter of time. The government appears to be taking early steps to avoid being caught off guard by future developments.
Shor’s algorithm, a method quantum computers could use, poses a direct risk to Bitcoin’s public-private key model. Once Bitcoin is spent from an address, the public key becomes visible on the network, creating a potential vulnerability. The new structure helps isolate that exposure across smaller wallets.
Security experts also support El Salvador’s strategy. They note that using multiple wallets with hardware protections and multi-signature access is a common best practice in crypto custody. These tools reduce single-point failures and strengthen internal controls.
Alignment with Broader Digital Strategy
This wallet redistribution follows El Salvador’s growing focus on digital infrastructure. The country recently signed a $1.6 billion agreement with Turkey’s Yilport Holdings to develop two ports near the planned Bitcoin City. Officials suggest that secure handling of digital assets is essential to these plans.
Last month, the country also began exploring public-sector crypto use with Pakistan. This move further shows that El Salvador is building partnerships to expand its role in global crypto adoption.
President Nayib Bukele has stated that the Bitcoin portfolio has grown in value over time. Even though the country temporarily paused purchases earlier this year, its holdings have increased. As of now, the portfolio has gained 124%, bringing the total value to $644 million.
Other Nations Monitoring El Salvador’s Custody Model
El Salvador’s actions are being closely watched by other governments. Officials and analysts suggest that its custody framework could serve as a model for managing state-owned crypto.
By improving wallet security and making asset movements transparent, El Salvador is positioning itself to better manage risk in the digital age. Many countries are still unsure how to handle public crypto reserves, but this latest move may offer a guide.
With rising concerns over future cyber threats, especially from quantum computing, more countries may adopt similar strategies to secure their assets.
