The authorities of El Salvador have made a large transfer of 6,274 BTC, equivalent to approximately $682 million, to fourteen separate cryptocurrency addresses. Previously, all government-held bitcoins were stored in a single wallet, but now each new address contains no more than 500 BTC.
This is reported by Business • Media
Reasons for the Transfer and Government Position
According to official information, the decision to distribute the assets was made to reduce potential risks associated with the development of quantum computers. The government’s Bitcoin Office noted that this step will minimize possible consequences in the event that powerful quantum machines capable of breaking cryptographic keys emerge. Authorities pointed out that during the spending of funds, the public keys become accessible for viewing, and thus, theoretically, future quantum algorithms could compromise them.
Expert Assessments on the Threat of Quantum Technologies
At the same time, representatives of the research company Project Eleven emphasized that the actual threat from quantum computers to Bitcoin’s security remains distant. Scientists note that current quantum machines have not been able to break even three-bit keys using Shor’s algorithm, while cryptocurrency uses 256-bit cryptography. Analysts estimate that over 6 million BTC could potentially be at risk if significant progress is made in this area, but currently, such possibilities are only theoretical.
Many well-known Bitcoin supporters consider the current concerns to be exaggerated.
“The threat of quantum computing is just noise,” insists Michael Saylor, co-founder of Strategy. In his opinion, if a real risk does arise, the community will have enough time to update protocols and equipment, as other technology companies regularly do.
It is important to note that the decision to transfer bitcoins was made against the backdrop of ongoing negotiations with the International Monetary Fund. A recent IMF report emphasized that El Salvador has not made new Bitcoin purchases since February, despite claims from government officials. In December 2024, the country signed an agreement with the IMF for $1.4 billion in financing, which includes certain restrictions on Bitcoin initiatives, although final terms are still being negotiated.
Previously, El Salvador allowed investment banks to hold bitcoins and provide cryptocurrency services to clients.