4 Reasons El Salvador Moved IDR 11 Trillion in Bitcoin: Protection or Sell Signal?
Jakarta, Pintu News â El Salvador is back in the crypto worldâs limelight after announcing a major move regarding the countryâs Bitcoin reserves. Through its official office, the government stated that it has moved thousands of BTC to several new addresses for security reasons. But behind this move comes speculation that the country is preparing to sell off some of its crypto assets.
1. El Salvador Breaks 6,285 BTC into Multiple Addresses for Security
According to a report from Bitcoin.com News, El Salvadorâ s National Bitcoin Office (ONBTC) confirmed that it had split more than 6,285 BTC (worth around $683 million at an exchange rate of Rp16,447/USD) to different addresses.
Each address will only contain a maximum of 500 BTC, which aims to reduce security risks in the event of an attack on a single address. This move is believed to be an effort to anticipate the threat of quantum computing, a technology that is feared to break the BTC encryption system in the future.
2. Technical Reasons: Prevent Public Key Exposure After Transaction
The National Bitcoin Office explained that the technical reason behind this move is to keep the public key unexposed. According to ONBTC:
âOnce funds are used from an address, its public key becomes exposed and more vulnerable. By splitting the funds into smaller addresses, the impact of potential quantum attacks can be minimized.â
This move also comes with a promise to provide a public dashboard so that all transactions remain transparent and can be monitored by the public, but without reusing the same address.
3. Analyst: Could be a Sell Preparation, Not Just Protection
While the government officially calls this a security measure, some analysts smell something else. Jacon King, CEO of Whalewire, called the protection excuse a âjokeâ and suggested that El Salvador may be preparing to sell its BTC reserves secretly.
According to him, the use of new wallets makes transactions more âcleanâ and inconspicuous, especially when making sales to OTC (over-the-counter) or exchanges, without attracting market attention. He referred to this move as:
âPolitical stunts under the guise of security.â
4. Quantum threat still theoretical, but El Salvador on alert
Most blockchain security experts believe that the real threat of quantum computing is still a long way off, and there is no strong technical reason to panic at the moment. However, El Salvador chose to be cautious early.
With over IDR 11 trillion in Bitcoin held by the state, caution may be a sensible strategy. However, against the backdrop of fiscal and geopolitical pressures, the motives behind this move remain the subject of speculation in the global crypto market.
Also Read: Bitcoin Price Increase Prediction: Analyst Dave The Wave Reveals Potential Spike in September!
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Reference
- Sergio Goschenko / Bitcoin.com. El Salvador Moves Bitcoin for Safety Purposes: Is a Selloff Coming? Accessed on September 2, 2025
