El Salvador Fortifies Bitcoin Treasury Amid Quantum Threat Fears — Is This a Warning?

El Salvador, the world’s first nation to adopt Bitcoin as legal tender, has moved to strengthen the security of its national cryptocurrency reserve amid growing concerns over the threat posed by quantum ￰2￱ Friday, the National Bitcoin Office announced that it had split the country’s holdings, currently 6,284 BTC valued at more than $682 million, into 14 separate ￰3￱ now, the government’s Bitcoin treasury had been stored in a single address, a practice often criticized by security experts for exposing public keys to potential long-term ￰4￱ Salvador Unveils Public Dashboard for Bitcoin Reserves After Redistribution The office, which operates under the direction of pro-Bitcoin President Nayib Bukele, said the redistribution was part of a broader initiative to enhance the long-term safety of El Salvador’s “National Strategic Bitcoin Reserve.” Officials emphasized that the move aligns with best practices in Bitcoin custody and also reflects preparations for the looming security risks posed by advancements in quantum ￰5￱ Salvador is moving the funds from a single Bitcoin address into multiple new, unused addresses as part of a strategic initiative to enhance the security and long-term custody of the National Strategic Bitcoin ￰6￱ action aligns with best practices in Bitcoin… — The Bitcoin Office (@bitcoinofficesv) August 29, 2025 Quantum computers , unlike traditional machines that process data in binary 0s and 1s, use “qubits,” which can exist in multiple states ￰7￱ allows them to process vast amounts of data at unprecedented ￰8￱ Bitcoin, the concern centers on Shor’s algorithm , a mathematical technique demonstrated in 1999 that, if deployed on a sufficiently powerful quantum computer, could break the elliptic curve cryptography (ECDSA) securing Bitcoin’s public and private ￰9￱ threat is particularly acute for addresses whose public keys have already been revealed through ￰10￱ a Bitcoin transaction is broadcast, the public key becomes visible on the blockchain, theoretically giving a quantum adversary the ability to calculate the private key and redirect funds before a transaction confirms.) June 13, 2024 Warnings from industry veterans have also ￰11￱ July, David Carvalho, CEO of Naoris Protocol and a former ethical hacker, cautioned that adversaries may already be harvesting blockchain data under a “harvest now, decrypt later” strategy, storing encrypted records today in anticipation of decrypting them with future quantum ￰12￱ suggested that such capabilities may emerge within years rather than decades, contradicting more conservative estimates placing “Q-day” between 2027 and the ￰13￱ hacker warns Bitcoin's quantum countdown has begun as 30% of supply sits vulnerable in older address formats to imminent quantum computing attacks. #QuantumComputing #Bitcoin ￰0￱ — ￰14￱ (@cryptonews) July 21, 2025 The security overhaul also comes as quantum research accelerates ￰15￱ giants including IBM, Google, and Microsoft are pushing toward quantum processors with millions of qubits, a development that could dramatically shorten the timeline for breaking existing encryption ￰16￱ agencies such as the National Institute of Standards and Technology (NIST) have been calling for adoption of quantum-resistant algorithms since ￰17￱ institutions have begun acknowledging the ￰18￱ has highlighted quantum computing in filings for its Bitcoin ETF , while Tether CEO Paolo Ardoino has also warned about the potential exposure of inactive Bitcoin wallets .

Bukele’s Daily Bitcoin Buy Claims Contradicted by IMF Review El Salvador’s embrace of Bitcoin continues to evolve on multiple fronts, though recent disclosures suggest a more measured approach than President Nayib Bukele has long ￰19￱ July 15, the International Monetary Fund (IMF) released its first formal review of El Salvador’s Bitcoin program since approving a $1.4 billion loan in December ￰20￱ report contradicted Bukele’s public claims of buying one Bitcoin per day, revealing that no new acquisitions have been made since February ￰21￱ Salvador’s Bitcoin experiment appears to be faltering under the weight of an IMF loan agreement and declining public engagement. #IMF #ElSalvador ￰1￱ — ￰22￱ (@cryptonews) July 26, 2025 Central Bank President Douglas Pablo Rodríguez Fuentes and Finance Minister Jerson Rogelio Posada Molina confirmed in a signed letter that “the stock of Bitcoins held by the public sector remains unchanged.” On-chain movements observed in recent months, the IMF clarified, were internal transfers between hot and cold wallets, not fresh ￰23￱ gained through seizures or reallocations were similarly excluded from state-backed ￰24￱ IMF praised the government’s pivot, calling the changes an important step toward reducing fiscal risk and improving ￰25￱ the reforms is a gradual withdrawal from public management of Bitcoin-related ￰26￱ Chivo wallet, once promoted as a flagship adoption tool, will be privatized and removed from government oversight by July ￰27￱ say this shift reduces strain on public finances while keeping the wallet operational under private ￰28￱ the same time, El Salvador continues to position itself as a symbolic leader in Bitcoin ￰29￱ August, the government launched “What is Money?”, a financial literacy program aimed at children as young as ￰30￱ isn't just a ￰31￱ is a testament to an extraordinary moment in ￰32￱ are proud to announce BITCOIN HISTÓRICO: a global summit on Bitcoin, transformation, and relentless optimism for the ￰33￱ believe Bitcoin is more than an asset – it's a tool for… ￰34￱ — The Bitcoin Office (@bitcoinofficesv) August 31, 2025 It also announced Bitcoin Histórico, a global summit framed as both a celebration of monetary sovereignty and a milestone in digital transformation.