23-9-2025 – El Salvador has transferred $678 million in Bitcoin, approximately 6,274 BTC, into 14 separate wallets to protect its national cryptocurrency reserves from potential quantum computing threats. The move aims to reduce risks tied to future technological advancements that could undermine blockchain encryption. Previously held in a single address, the Bitcoin has been divided into wallets capped at 500 BTC each, a strategy designed to limit exposure to any single-point failure.
The National Bitcoin Office (ONBTC) stated that this “shard and spread” approach enhances security while maintaining transparency through a public blockchain dashboard. Quantum computing, though not an immediate threat, could theoretically decrypt Bitcoin’s elliptic curve cryptography in the future, prompting this preemptive action.Since adopting Bitcoin as legal tender in 2021, El Salvador has amassed a significant crypto portfolio, which has grown 124% in value.
The redistribution aligns with best practices in crypto custody, reducing vulnerability to cyberattacks and supporting the nation’s broader digital asset strategy. However, the move adds complexity to treasury management, especially under scrutiny from a $1.4 billion IMF agreement that demands transparency in Bitcoin operations.
