El Salvador's government splits Bitcoin into multiple wallets to protect against quantum attacks
El Salvador, which had accepted Bitcoin as legal tender for four years from 2021 to 2025, has announced that it will split its Bitcoin holdings into multiple wallets, each holding up to 500 BTC each. This move is intended to minimize damage in the event of a quantum attack using a quantum computer.
El Salvador to transfer Bitcoin reserves to multiple addresses | Reuters
El Salvador relocates Bitcoin reserve into multiple wallets to reduce exposure to quantum attacks
https://cryptobriefing.com/bitcoin-quantum-security-el-salvador/
El Salvador splits bitcoin holdings between 14 addresses to 'enhance security' against quantum threats | The Block
https://www.theblock.co/post/368850/el-salvador-splits-bitcoin-holdings-between-14-addresses-to-enhance-security-against-quantum-threats
The National Bitcoin Office (ONBTC), the organization responsible for managing and administering Bitcoin under El Salvador's President Najib Bukele, has revealed that it has split the funds from a single address into multiple wallets as part of efforts to strengthen the security and long-term storage of the national strategic Bitcoin reserve.
ONBTC points out that quantum computers theoretically have the ability to break public key cryptography using ' Shor's algorithm ,' and that when a transaction using Bitcoin is made, the address could be exposed to a quantum attack that could find the private key and transfer the funds before the transaction is confirmed.
For this reason, the company plans to store its Bitcoin holdings in blocks of up to 500 BTC each to minimize the impact of a quantum attack.
ONBTC publishes information about its Bitcoin holdings on the following website.
Bitcoin Office - Bitcoin Explorer
https://bitcoin.gob.sv/ja/
El Salvador is a country where international remittances from workers abroad account for 20% of its GDP, and in 2021 it became the first country in the world to make the virtual currency Bitcoin legal tender in order to eliminate issues such as fees when sending money and the time it takes for the money to arrive.
El Salvador becomes the first country in the world to make Bitcoin legal tender - GIGAZINE
However, despite President Najib Bukele's enthusiasm, Bitcoin is not widely adopted in El Salvador.
Subsequently, in order to fulfill the contract signed to receive a loan from the International Monetary Fund (IMF), the Salvadoran Congress amended the law in January 2025 to 'lift the obligation to accept Bitcoin for transactions and debt payments.' In theory, Bitcoin remains legal tender in El Salvador, but since the obligation to accept it has been lifted, it is no longer legal tender in practice.
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in Note, Posted by logc_nt