• bitcoinBitcoin (BTC) $ 42,977.00 0.18%
  • ethereumEthereum (ETH) $ 2,365.53 1.12%
  • tetherTether (USDT) $ 1.00 0.2%
  • bnbBNB (BNB) $ 302.66 0.19%
  • solanaSolana (SOL) $ 95.44 1.28%
  • xrpXRP (XRP) $ 0.501444 0.1%
  • usd-coinUSDC (USDC) $ 0.996294 0.34%
  • staked-etherLido Staked Ether (STETH) $ 2,367.26 1.4%
  • cardanoCardano (ADA) $ 0.481226 2.68%
  • avalanche-2Avalanche (AVAX) $ 34.37 1.19%
  • bitcoinBitcoin (BTC) $ 42,977.00 0.18%
    ethereumEthereum (ETH) $ 2,365.53 1.12%
    tetherTether (USDT) $ 1.00 0.2%
    bnbBNB (BNB) $ 302.66 0.19%
    solanaSolana (SOL) $ 95.44 1.28%
    xrpXRP (XRP) $ 0.501444 0.1%
    usd-coinUSDC (USDC) $ 0.996294 0.34%
    staked-etherLido Staked Ether (STETH) $ 2,367.26 1.4%
    cardanoCardano (ADA) $ 0.481226 2.68%
    avalanche-2Avalanche (AVAX) $ 34.37 1.19%
image-alt-1BTC Dominance: 58.93%
image-alt-2 ETH Dominance: 12.89%
image-alt-3 BTC/ETH Ratio: 26.62%
image-alt-4 Total Market Cap 24h: $2.51T
image-alt-5Volume 24h: $144.96B
image-alt-6 ETH Gas Price: 5.1 Gwei
 

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El Salvador Bitcoin treasury

El Salvador Bitcoin treasury restructures for security with multi-wallet Bitcoin reserve strategy

Salma Al-Tamimi

Key Points:

  • El Salvador has restructured its Bitcoin treasury from one wallet to multiple secure addresses

  • The move reduces vulnerability to quantum computing threats

  • The strategy follows global digital asset management standards

  • Public wallet addresses will increase accountability and transparency


El Salvador’s Bitcoin treasury has moved to a new structure, ending its previous single-wallet model. The government now spreads its Bitcoin reserve across multiple blockchain addresses. Each address will hold a maximum of 500 BTC. This approach reflects a strategic shift in digital asset management and improves long-term security.

The National Bitcoin Office confirmed the change on August 30. Officials explained that this step aligns with international best practices. They also cited a rising concern: quantum computing. While not an immediate threat, quantum machines could someday break the cryptography used to secure Bitcoin wallets.

Previously, El Salvador reused a single public Bitcoin address. This made its cryptographic keys visible for an extended period. With time, this visibility increased exposure to potential attacks. By contrast, the new model minimizes risks by using multiple, unused addresses.

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Multiple wallets make Bitcoin reserves harder to attack

The new multi-wallet design strengthens the Bitcoin treasury against potential quantum attacks. In the government’s view, unused addresses remain protected. Once a wallet sends Bitcoin, its public keys are exposed. Therefore, holding smaller amounts per address limits damage from a possible breach.

According to the National Bitcoin Office, unused public keys remain cryptographically secure. The system delays exposure until actual use. This principle underlies the strategy. It is designed to ensure that if an attacker gains access, they only reach a small portion of the total Bitcoin reserve.

“Limiting funds in each address reduces exposure to quantum threats because an unused Bitcoin address with hashed public keys remains protected,” the statement reads.

Nayib Bukele’s administration has framed this overhaul as a forward-looking move. The goal is to make El Salvador’s Bitcoin reserve strategy a model for other governments.

El Salvador sets Bitcoin treasury precedent for nations

From my standpoint, this is one of the most rational decisions El Salvador has made regarding Bitcoin policy. Quantum computing isn’t here yet, but preparing now prevents future losses. Spreading out holdings also improves operational security and decentralizes risk.

Stacy Herbert, director of the National Bitcoin Office, emphasized sovereignty in her public comments. “El Salvador was the first to establish a Strategic Bitcoin Reserve,” she said. “We continue to lead the way on best practices for this era of true sovereignty and freedom money.”

The Bitcoin reserve now spans 14 different blockchain addresses. Each one holds a fraction of the country’s total 6,284 BTC. That amount equals over $681 million based on current prices. This diversification model adds accountability. All addresses are published, allowing the public to track movement transparently.


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Bitcoin community supports El Salvador’s proactive strategy

Industry leaders reacted positively to El Salvador’s updated strategy. Nick Neuman, co-founder of custody firm CasaHODL, praised the move. “Great to see large/public BTC holders taking proactive steps to protect against future quantum threats,” he wrote.

His comment signals how the Bitcoin community views El Salvador. The country is now seen not just as a buyer, but as a builder of financial resilience. While the International Monetary Fund recently criticized the country’s limited new purchases, internal restructuring continues.

El Salvador has often made headlines for its Bitcoin strategy. The country became the first to declare Bitcoin legal tender in 2021. Now, it leads in implementing treasury safeguards rarely seen in nation-states.

Nayib Bukele’s approach to digital assets remains controversial in international finance. But this latest decision appears both rational and forward-thinking. It sets a benchmark for any government managing digital reserves.

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Why did El Salvador restructure its Bitcoin treasury?

El Salvador moved away from a single-wallet system to improve the security of its Bitcoin reserve. The government cited the potential long-term risks of quantum computing, which could eventually compromise reused public keys. Using multiple blockchain addresses minimizes exposure, because only wallets that send transactions reveal their public keys. This setup also aligns with global digital asset management standards and increases transparency by publishing wallet addresses. Overall, the new structure limits the risk per wallet and increases trust in the country’s Bitcoin strategy.

How does the multi-wallet model protect against quantum threats?

The new system relies on a principle in Bitcoin security. An unused address with a hashed public key remains cryptographically secure. Once Bitcoin is sent from that address, the public key is exposed, becoming vulnerable. By using many addresses and storing a smaller amount in each, El Salvador’s treasury reduces the damage that a quantum-based attack could cause. The more diversified the addresses, the harder it becomes for any attacker to breach the full reserve.

How many Bitcoins does El Salvador currently hold?

As of the latest announcement, El Salvador holds 6,284 BTC, valued at over $681 million. These funds have been redistributed across 14 different wallet addresses. While critics, including the IMF, have argued that the country hasn’t added to its Bitcoin holdings significantly in recent months, the restructuring shows that El Salvador remains committed to digital assets. The published wallet addresses allow anyone to verify holdings, increasing public accountability.

What has been the response from the Bitcoin community?

Industry leaders have praised the move. Nick Neuman of CasaHODL called the change a “proactive step” in guarding against quantum risks. Many see El Salvador as a model for Bitcoin treasury management. While some global institutions remain skeptical about Nayib Bukele’s Bitcoin vision, the technical and security aspects of this decision have received approval. The move signals that El Salvador is not only buying Bitcoin, but also creating a framework to protect and manage it long term.

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