El Salvador has redistributed its entire Bitcoin reserve of 6,274 BTC, valued at approximately $678 million, into 14 new wallet addresses. This strategic move aims to enhance security against potential quantum computing threats. The Bitcoin Office noted that splitting the funds into smaller amounts reduces the impact of a potential future quantum attack, as the public keys of addresses become vulnerable once transactions occur. Despite these precautions, experts indicate that current quantum technology is not yet capable of breaching Bitcoin’s encryption, as no quantum computer has managed to crack anything beyond a 3-bit key. In discussions about the future risks, industry figures suggest that if quantum computing poses a significant threat, Bitcoin's developers can implement necessary upgrades to maintain security. The decision to split the holdings follows a backdrop of international scrutiny and negotiation with the IMF over El Salvador's Bitcoin initiatives.

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