El Salvador’s Bitcoin Office moved its 6,274 Bitcoin, worth $678 million, into 14 new wallets as a precaution against potential quantum computing attacks. This follows an April Project Eleven report warning that over 6 million Bitcoin, valued at around $650 billion, could be vulnerable to quantum computers capable of breaking elliptic curve cryptography (ECC). While Michael Saylor of MicroStrategy dismissed the threat as exaggerated, the transfer comes amid IMF scrutiny, noting no new Bitcoin purchases since February, and follows a $1.4 billion funding deal from December 2024 that required scaling back Bitcoin initiatives.

Figure 1. El Salvador Moves $678M in Bitcoin to Guard Against Quantum Threat

El Salvador Enhances Bitcoin Security Measures

El Salvador moved its 6,274 Bitcoin, worth $678 million, into 14 new wallets as a precaution against potential quantum computing attacks, the country’s Bitcoin Office announced on X (formerly Twitter). Each wallet holds up to 500 BTC to reduce risk, since Bitcoin public keys become vulnerable after funds are spent, potentially allowing future quantum computers to compromise them.

In April, quantum research firm Project Eleven warned that over 6 million Bitcoin, worth around $650 billion, could be vulnerable if quantum computers ever manage to break the elliptic curve cryptography (ECC) securing Bitcoin transactions. However, the firm emphasized that current quantum technology is far from capable, noting that no quantum computer running Shor’s algorithm has cracked even a 3-bit key, while Bitcoin private keys are 256 bits. In June, MicroStrategy’s Michael Saylor also dismissed the risk as exaggerated, suggesting that protocol and hardware upgrades would address any serious vulnerabilities and protect future Bitcoin security.

El Salvador’s Bitcoin moves come amid IMF scrutiny, with a July report noting no new Bitcoin purchases since February. In December 2024, the country secured a $1.4 billion IMF funding deal that required scaling back Bitcoin activities, though the specifics of the agreement remain contested.

Tether Updates Blockchain Strategy

Tether has revised its plan to discontinue smart contracts on five blockchains—Omni Layer, Bitcoin Cash SLP, Kusama, EOS, and Algorand—after community feedback. While the company will stop direct issuance and redemption on these chains, USDT tokens will remain transferable. Omni Layer holds the largest net USDT circulation among them at $82.9 million. Tether began phasing out support in August 2023 and halted minting on some chains in June 2024. Meanwhile, Tron and Ethereum lead USDT adoption, with $80.9 billion and $72.4 billion in circulation, respectively [1]. The stablecoin market currently totals $285.9 billion, dominated by USDT ($167.4B) and USDC ($71.5B), and analysts forecast growth to $2 trillion by 2028, boosted by the US GENIUS Act reinforcing the dollar’s role as the global reserve currency.

Stablecoin Market Forecast

El Salvador moved its 6,274 Bitcoin, worth $678 million, into 14 new wallets as a precaution against potential quantum computing attacks, the country’s Bitcoin Office announced on X (formerly Twitter). Each wallet holds up to 500 BTC to reduce risk, since Bitcoin public keys become vulnerable after funds are spent, potentially exposing them to future quantum computing threats.

In April, quantum research firm Project Eleven warned that over 6 million Bitcoin, worth about $650 billion, could be vulnerable if quantum computers ever break the elliptic curve cryptography (ECC) securing transactions. However, they stressed that current quantum technology is far from this capability, noting that no quantum computer running Shor’s algorithm has cracked even a 3-bit key, while Bitcoin private keys are 256 bits [1]. In June, MicroStrategy’s Michael Saylor also dismissed the threat as exaggerated, noting that protocol and hardware upgrades would likely address any serious vulnerabilities and protect Bitcoin against future quantum risks.

References:

1. https://quantumzeitgeist.com/el-salvador-transfers-678m-bitcoin-to-mitigate-quantum-computing-threat/

Cite this article:

Janani R (2025), El Salvador Moves $678M in Bitcoin to Counter Quantum Computing Risk, AnaTechMaz, pp.364