El Salvador Transfers Its Bitcoins to Multiple Different Addresses: They Have Issued a Statement

El Salvador's National Bitcoin Office announced that it has increased security measures by splitting its reserves of approximately 6,300 $BTC into 14 different addresses instead of keeping them in a single address.

With the new regulation, no address can hold more than 500 $BTC. This step is stated to be a precaution against potential future quantum computer threats.

Acting under the direction of President Nayib Bukele, known for his pro-Bitcoin stance, the office claims to purchase 1 $BTC daily. According to the office's website, the current reserve is 6,284 $BTC, worth approximately $682 million. While the entire reserve was previously held by a single address, on-chain data following the announcement indicates that the reserve has been distributed across 14 new addresses.

“This step aligns with best practices in Bitcoin governance and prepares for potential developments in quantum computing. Limiting funds per address reduces exposure to quantum threats by protecting unused Bitcoin addresses with hashed public keys,” the office said in a statement.

Quantum computers pose a theoretical threat to the ECDSA signatures used by Bitcoin, but analysts believe it will take decades for this risk to become a practical reality.

Meanwhile, claims regarding El Salvador's daily Bitcoin purchases are controversial. Documents signed by the country's central bank governor and finance minister as part of the IMF loan agreement state that the public sector has not purchased $BTC since February. Bukele or his office have not commented on the IMF report released in July, while continuing to announce daily purchases on the X platform.

*This is not investment advice.