Crypto

El Salvador relocates Bitcoin reserve into multiple wallets to reduce exposure to quantum attacks

August 30, 2025

Key Takeaways

El Salvador is relocating its Bitcoin reserves to several new addresses.
The move is aimed at strengthening the security of the National Strategic Bitcoin Reserve against future technological risks.

El Salvador has begun redistributing its national Bitcoin reserve across multiple fresh, unused addresses as part of a strategy to boost security and mitigate quantum-computing risks, according to an announcement from the country’s National Bitcoin Office (ONBTC).

The office said quantum computers could theoretically break public-private key cryptography using Shor’s algorithm, which affects not only Bitcoin but also banking, email, and communications systems.

“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 [is confirmed],” ONBTC stated.

Previously, the country reused a single address for transparency purposes, which continuously exposed public keys. The new system, managed by ONBTC, maintains transparency through a dashboard displaying the total balance across all addresses while eliminating the need for address reuse.

Following the transfer, each new wallet will hold up to 500 Bitcoin. Mononaut, the founder of Mempool, said that El Salvador had distributed the funds across 14 new addresses.

El Salvador’s Bitcoin Office just migrated their Strategic Reserve holdings into 14 new addresses with up to 500 BTC per UTXO.

This marks the transition to a new wallet management strategy aiming to avoid address reuse. https://t.co/ZX6PvfYGiL pic.twitter.com/rop3kmaLnY

— mononaut (@mononautical) August 29, 2025

At the time of writing, El Salvador held over 6,280 BTC worth more than $680 million. The country keeps adding a Bitcoin a day to its treasury.

Talk of quantum risks has circulated in the crypto community for years, but started picking up earlier this year after Google unveiled Willow, a quantum chip it claimed could solve certain computational tasks in minutes.

The release renewed concerns about quantum computing’s progress and its potential impact on Bitcoin’s cryptographic foundations.

The main concern revolves around Bitcoin’s use of elliptic curve cryptography (ECDSA) to protect private keys.

A sufficiently advanced quantum computer running Shor’s algorithm could theoretically derive a private key from its public key, enabling attackers to forge digital signatures and steal funds, just as ONBTC mentioned in its post.

For now, experts broadly agree that current quantum computers lack the power and stability to pose an immediate threat. However, developers and researchers are exploring quantum-resistant cryptographic techniques to secure Bitcoin and other networks for a future “quantum-safe” era.