El Salvador is taking steps to secure its Bitcoin reserves by reallocating them from a single wallet to 14 new addresses. This move aims to protect against potential threats from quantum computers.
Protection Against Quantum Threats
El Salvador has restructured its reserve system to prevent potential threats from quantum computers. The country had long used a single transparent address, leaving its public key constantly exposed. Now, it has divided its holdings to reduce associated cryptographic vulnerabilities.
New Reserve Management Strategy
The multi-wallet strategy was adopted to mitigate the risks posed by quantum computing. Each of the 14 wallets now holds 500 BTC, limiting the potential losses from any single key compromise.
Industry Reaction and IMF Dispute
While the reserve relocation proceeds, El Salvador remains in disagreement with the International Monetary Fund (IMF). The IMF stated that the country has not made any Bitcoin purchases since February, contradicting El Salvador’s public announcements of new acquisitions.
El Salvador’s reallocation of its reserves into 14 wallets aims to minimize risks associated with quantum threats while maintaining transparency in asset management.
