El Salvador overhauled the Bitcoin Treasury structure and moved from a single wallet system to a variety of models.
On August 30, the National Bitcoin Office confirmed that each retains its storage at several addresses that do not hold less than 500 BTC.
Why El Salvador is shifting Bitcoin Treasury Reserve Model
The Salvadoran government said redistribution coincides with global best practices in digital asset management. He also explained that the move addresses long-term concerns about quantum computing.
According to the government, quantum machines could theoretically crack the ciphers that protect the Bitcoin key. This possibility raises long-term questions about digital wallet security.
Previously, El Salvador relied on a single, continuous reused address. That practice made the public key permanently visible, giving the attacker endless time to attempt a violation.
The new system avoids this risk by spreading its holdings to multiple unused addresses, while publishing the list to ensure accountability.
With this in mind, the Bitcoin Office said it will reduce exposure through fund distributions by limiting the amount stored in each wallet. It also prevents unused public keys from appearing on the blockchain until a transaction occurs.
“Limiting funds at each address reduces exposure to quantum threats as unused Bitcoin addresses with hashed public keys remain protected. When funds are consumed from an address, their public keys are revealed and are vulnerable.
Stacey Herbert, head of the National Bitcoin Office, surrounded the move as preventive and strategic.
“El Salvador was the first to establish a strategic Bitcoin Reserve, and we continue to lead the establishment of best practices in this era of true sovereignty and freedom money,” she said.
Meanwhile, the decision drew positive responses from industry figures.
Nick Neuman, co-founder of Bitcoin Custody Firm Casahodl, described it as an inspiring example of how large-scale holders can predict future threats.
“It’s great to see large/public BTC owners taking proactive steps to protect against future quantum threats. El Salvador remains a good model of the way the nation manages Bitcoin’s finances,” writes Neuman.
The development comes about a month after the International Monetary Fund (IMF) claimed that El Salvador has not significantly increased Bitcoin Stash. Instead, it was argued that most activities involved internal transfers rather than new purchases.
Nevertheless, the Central American country continues to announce new Bitcoin purchases, pushing its total holdings to 6,284 BTC (over $681 million). At the time of reporting, Mononaut, the founder of Mempool, reported that these funds were spread to 14 new addresses.
In particular, President Nayib Bukele recently suggested that the figure could approach $1 billion by the end of the year.
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