El Salvador’s Bitcoin office has transferred its crypto holdings to a new address for security reasons, citing threats from potential quantum computing attacks. This move is part of a strategy to enhance the long-term custody of its National Strategic Bitcoin Reserve. Though blockchain data shows the country is still acquiring Bitcoin, the IMF has indicated that these are not new purchases and that El Salvador should adhere to commitments made under its arrangement with the IMF, including not accumulating more Bitcoin.
In 2021, El Salvador became the first country to adopt Bitcoin as legal tender, requiring businesses to accept it if technically feasible. Despite President Naibe Bukele’s commitment to buying 1 BTC per day, recent discussions with the IMF have led to a reduction in these ambitions. The Salvadoran government has split its Bitcoin holdings into multiple addresses to limit exposure to quantum threats, a common best practice. Public sentiment toward Bitcoin in El Salvador remains lukewarm, even as Bukele enjoys popularity for his aggressive stance against crime.
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