El Salvador split 6,283 BTC into 14 wallets, each limited to 500 BTC, to reduce per-address exposure and mitigate potential future quantum-computing threats while expanding regulated crypto banking under new legislation.
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6,283 BTC redistributed across 14 addresses, capped at 500 BTC per address
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New Investment Banking Law enables banks to custody Bitcoin for accredited investors
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Measure aims to reduce quantum risk and maintain on-chain transparency via a public dashboard
El Salvador Bitcoin split: 6,283 BTC moved into 14 wallets to reduce quantum risk and expand regulated crypto banking — read the update.
What is El Salvador’s new Bitcoin custody strategy?
El Salvador’s Bitcoin split is a redistribution of the nation’s 6,283 BTC reserve into 14 separate addresses, each limited to a maximum of 500 BTC. The move is designed to reduce per-address exposure and protect funds against emerging threats such as quantum-computing attacks.
How did the National Bitcoin Office implement the redistribution?
The National Bitcoin Office, under President Nayib Bukele, followed an audit of holdings and created multiple secure addresses using established custody practices. On-chain transfers show the reserve redistributed across 14 addresses, and officials say the process preserves transparency through a public dashboard.
Source: The Bitcoin Office/X
Why does quantum computing matter for Bitcoin security?
Quantum-computing risk refers to the possibility that sufficiently powerful quantum computers could derive private keys from exposed public keys, enabling theft before transactions confirm. Bitcoin addresses that have revealed public keys (after spending) are particularly vulnerable in theory.
Officials explained: “When a Bitcoin transaction is signed and broadcast, the public key becomes visible on the blockchain, potentially exposing the address to quantum attacks that could discover private keys and redirect funds before the transaction confirms.”
What practical protections does splitting funds offer?
By limiting the amount held in each address, any successful attack on a single private key would be capped at a smaller loss. Unused addresses whose public keys remain unrevealed retain stronger protection. The redistribution also aligns with recognized custody best practices to diversify risk.
Source: mononaut/X
How does this compare to the previous approach?
Previously El Salvador held a significant portion of its reserve in a single public address, which improved auditability but kept public keys frequently exposed. The new model diversifies custody across multiple wallets while retaining on-chain transparency via public reporting.
What is the broader market context?
Bitcoin’s price had been in a downtrend from a prior all-time high to around $108,996 at the time of reporting, with technical indicators showing bearish momentum. The custody change and the new banking law arrive as the country seeks to strengthen institutional pathways for crypto custody.
Source: TradingView
What legal changes support the custody shift?
El Salvador’s Legislative Assembly passed an Investment Banking Law permitting regulated banks to custody Bitcoin and provide crypto services to accredited investors. Officials say the law complements custody changes by enabling broader institutional participation in the domestic crypto ecosystem.
Frequently Asked Questions
How much BTC did El Salvador hold before the split?
El Salvador reported a total reserve of 6,283 BTC at the time of redistribution. The National Bitcoin Office had been purchasing roughly one BTC per day prior to the redistribution.
Does the redistribution affect transparency?
No. Officials state the redistribution maintains transparency through public on-chain proof and a publicly accessible dashboard showing address balances and movements.
Key Takeaways
- Risk reduction: El Salvador split 6,283 BTC into 14 addresses capped at 500 BTC to limit per-address exposure.
- Legal framework: New Investment Banking Law allows regulated banks to custody Bitcoin for accredited investors.
- Forward-looking security: Measure aims to mitigate theoretical quantum threats while preserving on-chain transparency and institutional access.
Conclusion
El Salvador’s redistribution of its 6,283 BTC reserve into multiple wallets represents a pragmatic custody adjustment that balances transparency with reduced per-address exposure. Coupled with newly passed banking legislation, the measures position the country to scale regulated crypto services while guarding assets against evolving technical threats. Watch for official dashboard updates from The Bitcoin Office for ongoing transparency and custody data.
