Coinbase Calls For Quantum-Resistant Bitcoin Upgrade, Warns Dormant Coins Pose A Challenge

Coinbase called for a separate plan for immovable coins, including lost wallets and Satoshi-era holdings, with options ranging from freezes to spending limits.

• Coinbase urged Bitcoin developers to begin preparing for quantum computing threats, warning that the upgrade process could take years.
• The exchange is preparing its systems, engaging developers and supporting phased upgrades that introduce quantum-resistant signatures.
• COIN shares fell 0.21% in pre-market trading Wednesday, while Stocktwits retail sentiment remained bearish amid low chatter.

Bitcoin’s (BTC) future security could be threatened by quantum computers capable of breaking the cryptography securing its wallets, Coinbase Global (COIN) warned, telling developers to begin preparing for an upgrade that may take years. The exchange also raised another challenge: how to protect dormant, lost or inaccessible Bitcoin holdings, including coins attributed to the network's pseudonymous creator, Satoshi Nakamoto, that may not be moved to upgraded wallets.

In a blog post on Tuesday, Coinbase said Bitcoin should begin preparing "well ahead" of any announcement of a cryptographically relevant quantum computer. The exchange said the move would be "a challenging, complex, and multi-year process."