TLDR
- El Salvador has moved his Bitcoin holdings from a single direction to multiple addresses for security reasons
- Bitcoin’s National Office cited quantum computing threats as the main motivation
- The country currently has 6,286 BTC worth $ 686 million
- There is contradictory information about whether El Salvador is still buying 1 BTC daily
- The IMF states that the government agreed to stop accumulating Bitcoin as part of a loan agreement
El Salvador has taken measures to improve the safety of his national Bitcoin holdings dividing his cryptography reserves into multiple directions. The country’s Bitcoin National Office announced the movement on Friday through the X Social Network platform, describing it as “a strategic initiative to improve the long -term security and custody of the National Bitcoin National Reserve Strategic.”
According to Blockchain data, Bitcoin’s holdings of El Salvador, previously maintained in a single direction, have now been distributed in 14 different directions. The Government explained that this decision was mainly motivated by security concerns related to possible threats of quantum computing.
“Quantum computers have the theoretical capacity to break the public-private key cryptography using the Shor algorithm,” the office said. “When a Bitcoin transaction is signed and transmitted, the public key becomes visible in the block chain, which can expose the address to quantum attacks.”
The country’s bitcoin reserve currently has 6,286 BTC according to Arkham Intelligence data. This amounts to approximately $ 686 million at the current Bitcoin price of around $ 109,204 per currency.
By redistributing its participations in multiple directions, each with no more than 500 BTC, El Salvador aims to reduce potential exposure to quantum threats. The Bitcoin office explained that Bitcoin’s unused addresses with public keys have protected from quantum attacks.
“Once funds are spent, their public keys are revealed and vulnerable. By dividing funds into smaller quantities, the impact of a possible quantum attack is minimized,” published the government’s account.
El Salvador is moving the funds from a single address of Bitcoin to multiple new addresses and not used as part of a strategic initiative to improve long -term safety and custody of the National Bitcoin National Reserve Strategic. This action is aligned with best practices in Bitcoin …
– The Bitcoin office (@bitcoinofficesv) August 29, 2025
Contradictory reports on Bitcoins purchases
There seems to be contradictory information about the current Bitcoin acquisition strategy of El Salvador. The Bitcoin National Office continues to announce Bitcoin daily purchases in social networks, claiming to buy 1 BTC per day as part of President Nayib Bikele’s commitment in 2022.
However, this contradicts information from the International Monetary Fund (IMF). According to a July statement of the IMF, the “authorities of El Salvador continue to fulfill the commitments of not voluntarily accumulating Bitcoin.”
An IMF spokesman told City City Press at the end of July that El Salvador was not buying Bitcoin weekly, but was simply moving funds between internal wallets. “The total amount of bitcoin that remains in the wallets owned by the government is still unchanged,” said the spokesman.
The confusion comes from an agreement that El Salvador made with the IMF earlier this year. The IMF began to disburse a loan to help the Salvadoran economy to grow, on the condition that the country would modify some of its Bitcoin policies. Despite this, the Salvadoran government press office confirmed that it would decipher that it would continue to buy 1 BTC every day.
El Salvador Bitcoin’s trip
El Salvador made history in 2021 when he became the first country to adopt Bitcoin as a legal tender together with the US dollar. The law requires companies to accept cryptocurrency if they have technological means to do so.
The government also launched a wallet supported by the State for Citizens as part of its Bitcoin initiative. President Bukele, who has been a vocal defender of the cryptocurrency, frequently announced Bitcoin’s purchases in social networks during price falls.
Despite President Bukele’s enthusiasm for Bitcoin, surveys indicate that many Salvadorans remain indifferent to cryptocurrency and do not use it in daily transactions. However, Bukele maintains great popularity among citizens, largely due to its hard position on crime and national repression against gang activity.
The Salvadoran government has created a public board that shows its transactions and addresses of Bitcoin for transparency. This movement is aligned with the best practices recommended by cryptographic privacy experts, who advise not to use a single direction to keep digital assets.
The recent redistribution of Bitcoin Holdings represents the continuous commitment of El Salvador with its cryptocurrency strategy, even when you sail financial agreements with international organizations such as IMF.
