El Salvador Restructures Bitcoin Reserve for Added Security

El Salvador is once again drawing attention in the crypto world after announcing changes to how it secures its national bitcoin holdings. The country’s National Bitcoin Office (ONBTC) confirmed that its Strategic Bitcoin Reserve is being redistributed into new wallets.

Good to know

• El Salvador holds more than 6,285 BTC, worth around $683 million.
• The stash will now be split into addresses of 500 BTC each.
• Officials say the move is to protect against potential quantum computing risks.

According to ONBTC, the decision aims to reduce exposure if a “quantum attack” were ever to occur. Once bitcoin is spent from an address, the public key becomes visible and more vulnerable. By splitting the reserve into smaller allocations, the potential impact of any breach is reduced.

The office added that a public dashboard will soon be launched so anyone can track these wallets, a step meant to improve transparency while avoiding address reuse.

Preparing for the Unexpected?

Most security experts believe bitcoin remains safe from quantum threats for now, but El Salvador is choosing caution with its state-held assets. The country has been a pioneer in adopting bitcoin as legal tender, and its handling of reserves is watched closely by the global crypto community.

Some analysts speculate that beyond security, creating fresh wallets could make it easier to manage sales through OTC desks or exchanges. Breaking holdings into tranches would allow discreet liquidations if needed, avoiding sudden market pressure. While no sale has been confirmed, the timing raises questions about whether El Salvador is also preparing for that possibility.

At time of writing, Bitcoin is trading at $107,884 according to CoinMarketCap data, down 4% over the last seven days.