Bitcoin Stash of $694 Million Divided Among Wallets by El Salvador in an Attempt to Avoid Quantum Risk

El Salvador Enhances Bitcoin Security with Strategic Reserve Restructuring

El Salvador, the first country to adopt Bitcoin as legal tender, has announced a significant update to its Bitcoin strategy. The country's Bitcoin Office has decided to divide its 6,274 Bitcoins into 14 separate wallets, each capped at 500 BTC, as part of a strategic initiative to enhance the security and long-term custody of the National Strategic Bitcoin Reserve.

Previously, El Salvador relied on a single Bitcoin address, a decision that repeatedly exposed public keys and left them open to potential quantum-based attacks. By distributing the Bitcoins across multiple wallets, the country aims to limit exposure to quantum-related risks and strengthen overall security.

The restructuring is also aimed at improving transparency. El Salvador has introduced a new public dashboard capable of tracking multiple wallets, allowing citizens and the international community to monitor the country's Bitcoin reserve. The Bitcoin reserve addresses are publicly listed, ensuring that the transactions are transparent and accountable.

The move is in line with industry best practices for digital asset management. The Bitcoin Office explains that this restructuring is a response to these practices, ensuring that El Salvador's Bitcoin reserve is managed securely and efficiently.

In addition to enhancing security and transparency, the restructuring is also designed to reduce potential quantum-related risks. By hiding private keys on new, unused addresses, El Salvador aims to further secure its Bitcoin reserve and safeguard its long-term custody.

This updated Bitcoin strategy pairs enhanced security measures with transparency, demonstrating El Salvador's commitment to responsible digital asset management. The country continues to lead the way in the adoption and management of Bitcoin as legal tender.