Quantum computing threat shakes El Salvador’s Bitcoin strategy

El Salvador, the country with one of the largest Bitcoin treasuries, made a surprising move on Aug. 30 when it transferred its BTC holdings to 14 new addresses.

The Bitcoin Office of the country announced on X that El Salvador is moving Bitcoin from a single address into multiple new and unused addresses.

The country made the decision as a precaution against potential developments in quantum computing, the Office said.

Does quantum computing carry risks for crypto?

Cryptocurrencies are virtual currencies that use cryptographic functions to encrypt all the financial details so that nobody other than those sending and receiving funds can access any sensitive data.

Related: What is Crypto? Cryptocurrency explained

Though the most powerful supercomputers will take thousands of years to decrypt crypto proofs, many among the crypto community fear quantum computers will be able to encrypt cryptocurrency details within seconds.

More News:

• Ethereum scientist warns 20% chance quantum computers could break crypto
• How will quantum computing impact bitcoin's security?
• Michael Saylor has a harsh response to quantum computers breaking encryption

Recently, Ethereum co-founder Vitalik Buterin highlighted a prediction:

• Quantum computers will be able to break modern cryptography in 2040.
• "Seemingly about a 20% chance it will be before end of 2030," added Buterin.

El Salvador's Bitcoin strategy to contain quantum risks

Each new unused address holds up to 500 Bitcoin and isn't vulnerable to quantum computing threats, El Salvador's Bitcoin Office said.

A man walks in front of a sign of a business where payments are accepted in bitcoin in San Salvador, on November 17, 2022. - President Nayib Bukele of El Salvador, the first country to make bitcoin legal tender, said Thursday the nation would buy one unit of the currency every day, doubling down in the face of public criticism of his embrace of the crypto money. When a Bitcoin transaction is signed, its public key gets visible, which exposes it to potential quantum attacks. It added:

"By splitting funds into smaller amounts, the impact of a potential quantum attack is minimized."

The Bitcoin Office emphasized that address diversification and limited exposure per address mitigate potential risks from quantum computing, it added.

However, not everyone believes quantum computing poses any immediate risks to crypto Ian Miers, Assistant Professor of Computer Science at the University of Maryland, thinks market estimates for the requirements for post-quantum crypto projects have an incentive problem.

Story ContinuesFew experts will say quantum computing is still decades away because the hype for it brings money, he added.

This story was originally reported by TheStreet on Aug 31, 2025, where it first appeared in the Policy section. Add TheStreet as a Preferred Source by clicking here.

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