El Salvador has redistributed its Bitcoin reserve holdings in 14 new wallet addresses as a caution against possible quantum computing threats.
“By dividing funds into smaller quantities, the impact of a potential quantum attack is minimized”, El Salvador Bitcoin’s office saying In an X post on Friday, adding that each Bitcoin (BTC) address has up to 500 BTC.
Bitcoin’s office explained that once the funds are spent from a Bitcoin direction, its public keys are revealed and vulnerable, which makes it an objective for quantum computers to crack, if technology evolves in a significant threat in the future.
More than 6 million bitcoin, for a value of around $ 650 billion, could be at risk if quantum computers become powerful enough to decipher the keys to the cryptography of the elliptical curve (ECC), said the eleven project of the quantum research company in April.
Ochain transfers have been made
El Salvador previously had its height of 6,274 Bitcoin (with a value of $ 678 million) in a single direction, but Blockchain data shows that these funds were transferred to 14 new directions on Friday.
Quantum is not a concern, for now
While El Salvador’s movement was praised by industry experts, the eleven project pointed out that quantum computing is still far from being able to hack Bitcoin. A private Bitcoin key contains 256 bits, and no quantum computer that runs the Shor algorithm has even managed to decipher a 3 -bit key yet.
Michael Saylor, the architect behind the Bitcoin Strategy Play Book, said that the threat of Quantum Computing A Bitcoin is a simple hype in June, adding that if it ever became a serious problem, the main developers and manufacturers of the main hardware manufacturers would implement solutions.
“The answer is: Bitcoin network hardware update, Bitcoin network software update, as well as [how] Microsoft, Google, the update of the United States government. “
El Salvador still entangled in the IMF drama
Bitcoin’s purchases of El Salvador have been questioned after an International Monetary Fund report in July said that the Central American country has not made new purchases of Bitcoin since February.
Related: Bukele de El Salvador reacts like $ 1b Bitcoin Holdings Bet increases in Kalshi
The country’s Bitcoin office has not directly approached the claims and has continued to publish about its Bitcoin purchases in X.
El Salvador obtained a financing agreement of $ 1.4 billion of the IMF in December 2024 in exchange for reducing its Bitcoin initiatives, among other conditions, although the terms seem to be under dispute between the two parties.
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