El Salvador Distributes Bitcoin Reserves Across Multiple Wallets for Security

El Salvador has restructured its bitcoin storage strategy to enhance security and mitigate future technological risks. Key changes include:

The nation’s entire bitcoin reserve has been moved from a single wallet into multiple wallets, each holding no more than 500 BTC.
This approach reduces potential damage from any compromised wallet and aligns with industry practices.
Concerns about quantum computing's ability to break current cryptographic protections prompted this shift.
The previous setup, using a single address for transparency, exposed keys on the blockchain continuously; the new model utilizes multiple wallets while maintaining public tracking through a dashboard.
Experts recommend dividing large balances into smaller portions to enhance privacy and security.
Adam Back, CEO of Blockstream, endorsed the change as best practice in bitcoin management.

While quantum computers capable of threatening bitcoin remain years away, El Salvador’s proactive measures may serve as a model for managing sovereign bitcoin reserves in the future.