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El Salvador Updates Bitcoin Management Strategy in Response to Quantum Technology Risks

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by Giorgi Kostiuk

3 days ago


El Salvador, actively developing its Bitcoin management strategy, has decided to distribute its reserves across multiple wallets due to potential threats from quantum computing.

Distribution of Bitcoin Reserves

According to blockchain information, the country has distributed its 6,280 BTC across smaller wallets, each capped at roughly 500 BTC. There are currently 14 addresses holding the reserves.

Reasons for Strategy Change

This decision was prompted by growing discussions around quantum computing and the potential threat of cracking Bitcoin’s cryptographic protections using advanced quantum technology. El Salvador's National Bitcoin Office described the move as "proactive risk management."

Future of Bitcoin Management

Despite the changes, the updated strategy does not alter the country's broader goal of accumulating Bitcoin — El Salvador continues to purchase one Bitcoin daily, maintaining a total reserve near $680 million. The government intends to ensure transparency through a public dashboard that tracks balances without reusing old addresses.

Thus, El Salvador positions itself as one of the first countries to openly adapt its national Bitcoin strategy to address risks associated with quantum technologies, even if those risks are still largely theoretical.

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