El Salvador transfers Bitcoin to multiple wallets, addressing quantum computing risks while safeguarding its cryptocurrency reserves for the future.
El Salvador made a major decision regarding its Bitcoin holdings. The country transferred all of its 6,274 BTC into 14 new wallet addresses. The move was announced by the National Bitcoin Office, which oversees El Salvador’s Bitcoin reserves. The primary aim of doing this was to secure the Bitcoin of the country against the threats of quantum computing that were emerging.
MicroStrategy’s Michael Saylor Dismisses Immediate Quantum Computing Risk to Bitcoin
The 14 new wallets will be able to hold 500 BTC. El Salvador will break down the Bitcoin into smaller portions, and in this process, the country will mitigate the effect of any quantum computing attack in the future. Quantum computing has caused concern in the global sphere because it is capable of breaking the existing encryption systems. The security of Bitcoin is dependent on such techniques and therefore, any breakthrough in quantum computing will render the blockchain in Bitcoin susceptible.
This move comes when the world is now recognizing that quantum computing risks might present. Nonetheless, this is not the opinion of all, that this threat is imminent. Other analysts say that Bitcoin has not yet lost its security. Indicatively, a reputable research company known as Project Eleven indicated that the private keys of Bitcoin are encrypted with 256-bit encryption. They said that quantum computers are yet to crack even the small encryption keys, and it might take years until such a problem becomes a reality.
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In June 2025, Michael Saylor, CEO of MicroStrategy, downplayed the threat of quantum computing to Bitcoin, calling it over-hyped. He believes that the Bitcoin community would revise the security system of the network once quantum computers become strong enough to attack Bitcoin. He likened it to the way that the giant technology firms such as Google and Microsoft are constantly upgrading their systems to address emerging threats.
El Salvador, MicroStrategy Lead Global Effort to Secure Bitcoin from Quantum Risks
Despite these opinions, the ruling of El Salvador indicates that the issue of the quantum computing risk is becoming more worrisome. In 2025, Google unveiled its Willow quantum chip, which further fuelled these fears. This prompted the enactment of the Quantum Computing Cybersecurity Preparedness Act by the U.S. at the end of 2022. This law compels the federal systems to upgrade to quantum-resistant. This global movement can be classified as a movement in which El Salvador fits in because most organizations and countries are beginning to prepare in a world where quantum computing might become a reality.
Other companies are also making similar moves in order to secure their Bitcoin reserves in addition to El Salvador. To illustrate the point, MicroStrategy, a large, well-known Bitcoin holder started transferring its 252,000 BTC to several wallets in May of 2025 to mitigate threats associated with quantum computers. At the international scale, in July 2025 the European Union initiated EUR1 billion of the development of post-quantum cryptography. The study will develop new encryption schemes that will resist the quantum computer power. In the future, such developments would be useful in blockchain networks such as Bitcoin.
The reliance on Bitcoin as a significant segment of the economy of El Salvador is another reason why the move occurred. In 2025, the International Monetary Fund (IMF) raised concerns about the country’s heavy reliance on Bitcoin, halting bailout talks.
This diversification of the Bitcoin reserve would also be a means by which El Salvador would demonstrate that it is being more cautious in handling its cryptocurrency resources.
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