Coinbase Warns Bitcoin Faces Quantum Threat, Flags Satoshi-Era Coins As A Separate Challenge

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."

A quantum computer could break the cryptography that keeps Bitcoin safe in wallets.

Why Coinbase Is Calling For Quantum Readiness

Coinbase said it held about “5% of all Bitcoin in existence” as a custodian for banks, asset managers, hedge funds, and other institutions. Coinbase added that it was preparing its own systems, holding discussions with Bitcoin developers, and participating in the Bitcoin Security Consortium. The exchange clarified that the post was meant as input to an open discussion, "not a set of instructions or a final Coinbase position."