El Salvador has moved its national Bitcoin holdings into multiple new wallets, the country’s Bitcoin Office said, citing concerns about future quantum-computing threats.
On Aug. 29 the office posted on X that funds previously held in a single address were redistributed into multiple unused addresses “as part of a strategic initiative to enhance the security and long‑term custody of the National Strategic Bitcoin Reserve.” The move aims to limit exposure because once an address has been spent from, its public key is revealed and could, in theory, be targeted by quantum attacks using Shor’s algorithm.
Blockchain analytics from Arkham Intelligence show the government currently holds 6,286 BTC — roughly $686 million at today’s prices — and that it recorded a 1 BTC movement last Sunday. The Bitcoin Office said each new address will hold up to 500 BTC to minimize the impact of any single compromised key.
The announcement arrives amid an International Monetary Fund (IMF) agreement that asked El Salvador to scale back its Bitcoin accumulation. The IMF has said the government is not voluntarily acquiring more Bitcoin and described recent activity as internal wallet reshuffling. El Salvador’s press office, however, has confirmed continued purchases of 1 BTC per day.
Why this matters: splitting custody across multiple addresses is a recognized security best practice and signals a government-level focus on long‑term custody risk. It also highlights a continued tension between El Salvador’s pro‑Bitcoin policy and international lenders’ caution.
Risk note: This is a custody and policy development, not investment advice. Government custody moves do not guarantee price stability; political and regulatory risks remain material for holders and visitors to the market.
Source: Decrypt. Read the original coverage for full details.