El Salvador's National Bitcoin Office has announced new security measures by distributing its Bitcoin reserves to reduce vulnerability.
Bitcoin Reserve Security
The National Bitcoin Office of El Salvador has reported the distribution of its reserves, approximately 6,300 BTC, across 14 different addresses. This decision was made to enhance the security of the funds and reduce the risks associated with single-address storage. Under the new regulation, no address can hold more than 500 BTC.
Regulations and Quantum Threats
In its statement, the office noted that this step aligns with best practices in Bitcoin governance and prepares for potential threats posed by quantum computers. As existing vulnerabilities in ECDSA signatures are at risk from quantum technologies, distributing funds across addresses helps mitigate risks by protecting unused Bitcoin addresses with hashed public keys.
Disputes over Bitcoin Purchases
Despite the office’s claims of daily purchasing 1 BTC, disputes surround the actual execution of such purchases. Documents signed by the central bank governor and finance minister, as part of an IMF agreement, state that the public sector has not purchased BTC since February. El Salvador’s daily purchase announcements continue to raise questions among experts.
Thus, El Salvador is taking steps to enhance the security of its Bitcoin assets while facing contradictions in reports about daily BTC purchases.
