Quantum Threats or Something More? El Salvador Is Splitting Up Its Bitcoin

The government of El Salvador has moved her Bitcoin Stash to new addresses, only a few months after he told the International Monetary Fund that it would no longer buy from the cryptocurrency.

The country’s national Bitcoin office said on Friday that it had moved its funds from one Bitcoin address to new addresses “as part of a strategic initiative to improve safety and long-term custody of the national Bitcoin reserve.”

The Bitcoin office of El Salvador noted the security threat that was the arrival of Quantum Computing as the primary motivation for moving its coins. “Quantum computers have the theoretical possibility to break public-private key cryptography with the help of Shor’s algorithm,” the office posted on X. “When a Bitcoin transaction is signed and broadcast, the public key becomes visible on the Blockchain, which means that the address may be exposed to quantum attacks.”

The president of El Salvador, Nayib Bukele, said in 2022 that his government would buy 1 BTC per day for her national reserve. The treasury of the country currently has 6,286 BTC, according to Arkham Intelligence Data. That is $ 686 million in crypto Today’s price from $ 109,204 per coin.

The office noted during the weekend that it had previously only used one address for transparency, but would now use several addresses as a way to improve security. Data from Arkham Intelligence shows that the country last bought 1 BTC on Sunday. “The reserve is redistributed in multiple addresses, each with up to 500 BTC. Limitation of funds in each address reduces the exposure to quantum threats because an unused Bitcoin address with surveyed public keys remains protected,” posted the country of the country.

“Once funds have been spent from an address, the public keys are unveiled and vulnerable. By splitting funds into smaller quantities, the impact of a potential quantum attack is minimized,” the account said.

The Salvadoran government now has a public dashboard with its transactions and addresses. Crypto -Privacy experts advise you to use one address to contain Bitcoin and other digital coins and tokens.

The announcement of El Salvador comes after the country said in July that the Bitcoin would not continue to collect, according to the IMF.

The body began to pay the first part of the loan in May to help the Salvadoran economy grow on the condition that El Salvador would change part of his Bitcoin policy.

A July statement of the IMF said that “authorities continue to meet obligations to not voluntarily collect Bitcoin.” At the end of July, one IMF spokesperson Inner City Press told that El Salvador did not actually buy Bitcoin every week, but instead simply moved funds from internal portfolios. “The total amount of Bitcoin that is held over the portfolios of the government is not dressed,” said the spokesperson.

The press office of the Salvadoran Government confirmed Decrypt That it would continue to buy 1 BTC per day. The IMF did not respond immediately DecryptThe request for comments.

El Salvador in 2021 Bitcoin made Legal tender together with the US dollar. The new law meant that companies had to accept the cryptocurrency if they had the technological means to do this. The Salvadoran government even launched a wallet supported by the state for its citizens.

President Bukele would also often buy the cryptocurrency and criticize IMF and other institutions.

But despite the enthusiasm of President Bukele for Bitcoin, polls show that Salvadorans are largely indifferent to the cryptocurrency and not use it. Nevertheless, the Salvadoran leader is largely popular with burgers thanks to its tough position and the national performance against gang activity.