Coinbase Calls for Immediate Quantum-Ready Upgrades to Bitcoin
Why Coinbase wants Bitcoin to prepare for quantum computers now
Coinbase has published a proposal urging the Bitcoin network to begin upgrading its security against quantum computers as soon as possible. The Nasdaq-listed exchange, which holds roughly 5% of all existing Bitcoin for its clients including banks and hedge funds, released the plan in a blog post on Wednesday.
The exchange argues that Bitcoin should not wait until a quantum threat becomes real before acting. It recommends adopting flexible post-quantum digital signatures, rolling out changes in stages, and handling the difficult question of what to do with lost or dormant coins in a separate discussion so it does not delay broader protections.
How Bitcoin wallets work and what quantum computers could threaten
Bitcoin wallets rely on two keys. A public key acts like a visible mailbox slot anyone can drop funds into. A private key is the secret password known only to the owner that unlocks and spends those funds.
When a user sends Bitcoin, the wallet creates a digital signature using the private key. The network verifies the signature against the public key before approving the transaction. Bitcoin currently uses two signature methods called ECDSA and Schnorr.
These methods are secure against today’s computers. But a sufficiently powerful quantum computer could theoretically work backward from a public key or digital signature to derive the private key, potentially draining wallets that have not upgraded.
What Coinbase recommends
- Start preparing for quantum threats immediately rather than waiting.
- Use flexible post-quantum signature schemes that can be upgraded on the network.
- Adopt changes in stages with reliable implementations.
- Support both individual users and institutions, including those using multiparty security systems where multiple parties share control of a key.
- Address the question of dormant or late-migrating wallets in a separate debate.
What remains unclear
The source article references projections that a capable quantum computer could arrive “by 2029,” but the attribution is cut off in the published text. No specific timeline or consensus on when such a machine might exist was confirmed in the supplied material.
It is also unconfirmed whether any Bitcoin upgrade incorporating post-quantum signatures has been formally proposed to the network’s developer community or scheduled for implementation.
Why this matters
Bitcoin’s security depends on the assumption that private keys cannot be derived from public keys. If that assumption ever fails, coins in vulnerable wallets could be stolen. As a major custodian holding around 5% of all Bitcoin, Coinbase’s stance signals that large institutional players see quantum readiness as an urgent operational concern, not a distant theoretical problem.
Where to find the proposal
Coinbase outlined its full recommendations in a blog post titled “Working Together on BTC Post-Quantum Readiness.”
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.