El Salvador splits Bitcoin reserves into 14 wallets to combat quantum risks

• El Salvador distributes 6.274 BTC to 14 new wallets
• Quantum computing sparks debate over Bitcoin security
• Industry leaders downplay risks and advocate for future upgrades

El Salvador, a pioneer in the official adoption of Bitcoin as legal tender, decided to redistribute its reserves to mitigate risks associated with the development of quantum computing. The government transferred 6.274 BTC, valued at approximately US$678 million, from a single address to 14 new wallets, each containing a maximum of 500 BTC.

El Salvador is moving the funds from a single Bitcoin address into multiple new, unused addresses as part of a strategic initiative to enhance the security and long-term custody of the National Strategic Bitcoin Reserve. This action aligns with best practices in Bitcoin…

— The Bitcoin Office (@bitcoinofficesv) August 29, 2025

According to local authorities, the decision aims to reduce vulnerability to quantum attacks, as the exposure of public keys in addresses can become a weak point in the face of technological advancement. Previously, the country used a single wallet to maintain transparency of reserves, but now it operates with multiple publicly monitored addresses.

The Bitcoin office in El Salvador emphasized that, in the future, quantum computers could be capable of breaking the cryptographic protection that underpins Bitcoin, banking systems, and even email. This redistribution would ensure that, if attacks become viable, only small portions are at risk.

Project Eleven warned:

"Over 10 million addresses have exposed public keys. Quantum computing is constantly evolving. No one has yet rigorously assessed this threat."

Major financial institutions have also expressed concern. BlackRock, in a recent document, highlighted that quantum advances could compromise the encryption of digital assets in the future.

Despite El Salvador's caution, some in the industry maintain a more relaxed stance. Tether CEO Paolo Ardoino stated that Bitcoin will likely have quantum-resistant addresses in due course, allowing users to securely transfer funds.

Michael Saylor, co-founder of Strategy, dismissed the fears as a "marketing tactic" for projects exploring quantum computing. He believes companies like Google and Microsoft would never release quantum computers capable of threatening global systems. Saylor further emphasized that

“Bitcoin could be upgraded through software and hardware, and phishing attacks are much more likely to put funds at risk than quantum computing.”

With this strategic move, El Salvador reinforces its active stance in protecting national Bitcoin reserves, balancing transparency and security in the face of constantly evolving technological advances.