The Salvadoran Government moved about 6.274 BTC, about 678 million dollars, into 14 separate addresses. Each address holds a maximum of 500 BTC. The operation works to reduce attacks from new technology problems and helps manage the state reserve.
Funds moved to new addresses
The government did not use public keys again. The actions reduce problems that come from key exposure. The National Office of Bitcoin, ONBTC, put a public dashboard online to watch the movements. This shows good openness and custody – it helps keep the state’s money safe.
The official reason rests on the idea that quantum computing could be at risk in the future
Asymmetric cryptography protects private keys. Experts and people in the market do not agree. Some say the risk is not urgent. Others warn that preparation is necessary. Regardless of when breaking up reserves limits the effect of a problem on a part of the total.
The division reduces exposure
It can also improve internal controls, as it makes audits easier. But it is not a final solution for quantum problems. The change to strong schemes will need time and technical work. More wallets make work harder – it increases human problems if good custody rules are not in place.
The action shows El Salvador’s choice to keep Bitcoin as a very important asset
It provides a real example for governments that manage digital reserves. Openness and good operation support financial control and decentralization. Yet it shows the need for public rules to deal with price changes and the social costs with using crypto assets.
But it does not remove the main problem. The measure can act as a guide for other governments; they might want to keep digital assets without giving up on decentralization and control.
