- El Salvador splits 6,284 BTC into 14 wallets for quantum security.
- IMF deal limits public Bitcoin use, but reserve buying continues.
- Quantum risk sparks new wallet strategy and transparency dashboard.
El Salvador has shifted its Bitcoin strategy as concerns about quantum computing grow. The country has moved its national Bitcoin reserve into multiple wallets to limit exposure to future risks.
Officials said the decision improves both transparency and security. The move comes as the IMF continues to pressure El Salvador to scale back its Bitcoin activities.
Bitcoin Reserve Moved into Multiple Wallets
On August 30, 2025, ForkLog reported that El Salvador redistributed its 6,284 BTC, valued at about $680 million, across 14 addresses. Each wallet now holds no more than 500 BTC. The country’s Bitcoin Office explained that limiting the funds in each address reduces the potential impact of quantum attacks.
Officials noted that spending Bitcoin reveals the public key, giving attackers time to attempt private key recovery if computing power advances.
Previously, El Salvador used a single wallet to showcase transparency, holding more than 6,283 BTC at the address 32ixEd. However, reusing one address exposes keys to long-term vulnerabilities.
Authorities said a new public dashboard now tracks all wallets, allowing transparency while removing the risk of address reuse.
Quantum Risks and Industry Responses
Concerns about quantum computing have grown in recent years. A report by Chaincode Labs estimated that 4–10 million BTC could be vulnerable to attacks if quantum computers advance.
Project Eleven highlighted that more than 10 million Bitcoin addresses have exposed public keys, including 1.1 million BTC linked to Satoshi Nakamoto and millions lost or inactive.
Industry leaders expressed mixed views. Tether CEO Paolo Ardoino said even Satoshi’s coins could one day be compromised, but believed the threat was distant. Michael Saylor, co-founder of Strategy, dismissed quantum fears as exaggerated, claiming phishing remains a more urgent risk.
He said Bitcoin could adopt software or hardware upgrades if necessary, and suggested major tech firms would not release technology that undermines their own security.
Meanwhile, developers are exploring options such as reintroducing the OP_CAT opcode, which was disabled by Satoshi in 2010, to strengthen resistance.
IMF Agreement Limits Bitcoin Activities
The International Monetary Fund (IMF) reached a staff-level agreement with El Salvador for a $1.4 billion Extended Fund Facility. Under the deal, public sector involvement in Bitcoin will be limited, while private sector acceptance becomes voluntary. Taxes remain payable in US dollars, and the state-run Chivo wallet will be wound down.
Despite these measures, Stacy Herbert, director of El Salvador’s National Bitcoin Office, stated that the government would continue adding Bitcoin to its Strategic Reserve, possibly at a faster pace.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
