El Salvador has enhanced its strategy for securing its Bitcoin reserve, shifting its entire holdings from a single wallet to multiple new wallets, each containing a maximum of 500 BTC. This move, framed as a measure for 'quantum risk mitigation,' aims to bolster security while preparing for potential future threats from quantum computing. The new setup reduces the risk of exposing too many private keys at once, as public transactions can inadvertently reveal cryptographic signatures that may be exploited by advanced quantum computers in the future. By dispersing funds into smaller wallets, El Salvador minimizes the potential impact of a security breach. This strategy not only enhances security against future quantum threats but also aligns with established best practices in Bitcoin custody management. Experts have commented that maintaining smaller, separate balances is a sound move, reflecting principles recognized within the Bitcoin community. Although powerful quantum computers capable of threatening Bitcoin security are still likely a decade away, El Salvador's proactive approach may serve as a blueprint for other nations managing Bitcoin reserves.

Source 🔗