El Salvador will be moving its Bitcoin reserves across multiple addresses to tighten its security of the cryptocurrency, confirmed on August 29.
The El Salvador Bitcoin Office announced the initiative on August 29, noting the move from a single address was part of a strategic initiative to “enhance the security and long-term custody of the National Strategic Bitcoin Reserve”.
The Bitcoin Office has raised concerns over the risks posed by quantum computing in relation to crypto security.
As Bitcoin transactions enable public keys to become visible within the blockchain it was performed on, this therefore heightens the potential for crypto hacks, or otherly known as quantum attacks, which attacks the cryptography algorithm.
El Salvador currently holds its entire $687m Bitcoin reserve in a single address, meaning a successful attack could lead to a catastrophic collapse of its Bitcoin strategy.
To reduce this risk, the Bitcoin Office confirmed it will be moving 500 BTC into new addresses. This redistribution aims to limit the exposure to quantum attacks as unused Bitcoin addresses with only hashed public keys are considered better protected against future threats.
The Bitcoin Office explained in more detail in a post via its X account below
El Salvador protecting its Bitcoin leadership?
El Salvador’s move to spread its Bitcoin reserves across multiple addresses comes at a time when the US, under President Donald Trump, has doubled down on its crypto strategy.
Within his first 100 days in his second term, Trump signed an executive order to establish a Strategic Bitcoin Reserve, funded directly through the US Treasury. The policy has made the US the largest state holder of Bitcoin globally, according to BitBo.
The US, as of July 22, 2025, holds just over 198,000 BTC valued at $21.71bn. China is a close second with 194,000 in BTC reserves at a valuation of $21.27bn. El Salvador currently holds 6,246 in BTC reserves, the sixth-highest in the world; though its significance lies in being the first nation to adopt Bitcoin as legal tender.
Bitcoin’s rally to record highs has closely tracked Trump’s pro-crypto rhetoric. Since his campaign pledge to make the US the “global crypto capital,” prices have surged from $64,544 in September 2024 to $123,322 by mid-August 2025.
For El Salvador, the focus on securing its reserves suggests consolidation is now the priority before pursuing further investment.
