El Salvador has redistributed its Bitcoin reserve operations in 14 new portfolio addresses as a precaution against potential quantum calculation threats.
“By dividing the funds into smaller quantities, the impact of a potential quantum attack is minimized,” said El Salvador’s Bitcoin office in a Post on Friday, adding that each Bitcoin address (BTC) contains up to 500 BTC.
Bitcoin Office explained that once the funds spent from a Bitcoin address, its public keys are revealed and vulnerable – which makes it a target for quantum computers to break – if technology is evolving towards a significant threat in the future.
More than 6 million Bitcoins – worth around 650 billion dollars – could be at risk if quantum computers become powerful enough to break the keys to Courbe Elliptical Crypt (ECC), said the Eleven quantum research company project in April.
Onchain transfers have been made
El Salvador had previously held its reserve of 6,274 bitcoin (worth $ 678 million) in one address, but blockchain data show that these funds were transferred to 14 new addresses on Friday.
Quantum is not a concern, for the moment
While El Salvador’s decision was welcomed by industry experts, Project Eleven noted that quantum computer science is still far from being able to hack Bitcoin. A private Bitcoin key contains 256 bits, and no quantum computer running the Shor algorithm has yet managed to break a 3 -bit key.
Michael Saylor, the architect behind Bitcoin Playbook of Strategy, said that the threat of Quantum Computing towards Bitcoin is a simple media threshing in June, adding that if it became a serious problem, basic protocol developers and equipment manufacturers would implement fixes.
“The answer is: the upgrade of the Bitcoin network hardware, the upgrading of Bitcoin network software, just like (how) Microsoft, Google, upgrading of the American government.”
El Salvador still entangled in the drama of the IMF
El Salvador Bitcoin purchases were questioned after a report of international monetary funds in July said that the country of Central America had not made new Bitcoin purchases since February.
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The Bitcoin office of the country did not directly address the affirmations and continued to publish on its Bitcoin purchases on X.
El Salvador obtained a $ 1.4 billion funding agreement from the IMF in December 2024 in exchange for the reduction of its Bitcoin initiatives, among other conditions – although the terms seem to be disputed between the two parties.
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