Key control
In the middle of the Bitcoin recession, El Salvador divided 6,283 BTC into 14 wallets to reduce quantum risk. The Nation advances the new banking laws to expand regulated cryptographic services.
El Salvador, the first nation to make Bitcoin [BTC] A legal tender, took a key step to strengthen the custody of its holdings
On August 29, the country’s National Office of the country announced that its reservation of almost 6,300 BTC had been divided into 14 directions, each limited to 500 BTC.
El Salvador’s new Bitcoin strategy
Under the leadership of President Nayib Bukele, the Bitcoin office has constantly expand the Reserve of the Nation, buying a BTC every day.
The stash now totals 6,283 BTC, valued at more than $ 682 million at the time of publication.
Source: The Bitcoin/X office
However, the data in the chain show that the holdings have been redistributed in 14 separate directions, without any individual direction that has more than 500 BTC.
Source: Mononaut/X.
The officials emphasized that redistribution follows the best established practices and is intended to protect against evolving threats, including future advances in quantum computing
Why quantum matters
A particular concern is quantum computing, which, in theory, could undermine the public-private key cryptography that Bitcoin ensures.
This cryptography also supports many everyday systems, including banking, email and communications, which makes the precautionary measure a prospect to protect the country’s digital assets.
They noticed,
“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 that could discover private keys and redirect funds before the transaction confirms.”
The unused addresses, on the contrary, remain protected because their public keys never appear in the block chain.
In that note, they said,
“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.”
Previous vs. New approach
Previously, El Salvador maintained his reservation in a single public direction. While this improved transparency meant that the keys were almost continuously exposed.
The new configuration distributes coins in multiple wallets while maintaining transparency through a public board.
By diversifying addresses and limiting exposure, El Salvador reduces quantum risks while maintaining its transparent and safe Bitcoin reserve.
Bitcoin market backdrop
The announcement occurred when Bitcoin’s struggles, having fallen from a historical maximum of $ 124,500 to around $ 108,996, approaching the key support levels, with technical indicators such as RSI and MacD pointing out the bassist impulse.
Source: TrainingView
Separately, the Legislative Assembly of El Salvador approved a new investment banking law, allowing regulated banks to maintain bitcoin and offer cryptographic services to accredited investors.
Together, these measures reinforced the ambition of El Salvador to position themselves as a global center for digital assets.
