Bitcoin should begin preparing for a transition to quantum-resistant cryptography without delay, according to a recent report issued by Coinbase’s independent advisory council of cryptographic experts. The guidance, released in June, emphasizes that while quantum computers currently pose no immediate threat to Bitcoin, the unpredictability of technological progress makes early planning essential to avoid future disruptions.
The report, which includes contributions from Ethereum Foundation researcher Justin Drake, highlights a growing debate within the Bitcoin community. A key issue centers on Bitcoin held in addresses secured by existing ECDSA and Schnorr signatures. Some community members advocate for setting a migration deadline, after which these signature schemes would no longer be accepted. This approach would effectively freeze coins that have not been moved to quantum-resistant addresses, preventing potential attackers from gaining control of large amounts of BTC via quantum computers in the future.
However, critics argue that rendering those coins unspendable would constitute confiscation of private property and violate Bitcoin’s core principles of immutability and user sovereignty. The advisory board does not endorse either position, instead stating that the final decision must emerge through Bitcoin’s consensus process. “We refrain from providing any specific recommendation regarding the treatment of vulnerable coins,” the authors write, emphasizing that the decision should be made by the Bitcoin community.
The report outlines the scale of the risk. According to the advisory board, roughly 1.7 million BTC are held in older pay-to-public-key addresses where public keys are already exposed, making them potentially vulnerable to future quantum attacks. Many of these coins are believed to belong to lost wallets, including those attributed to Bitcoin’s creator, Satoshi Nakamoto. Drawing on research from Project11, the report warns that as many as 5 million BTC could be at risk through address reuse, though a significant portion of those holdings remain under the control of active users and institutions.
Several technical proposals are already being explored to ease Bitcoin’s transition to quantum-resistant security. One proposal, called Hourglass, would limit the number of BTC that can be moved from vulnerable addresses in each block, reducing the risk of a sudden influx of recovered coins. Another proposal, BIP-361, would allow users to prove ownership using post-quantum cryptographic methods even after legacy signatures are retired. The report also discusses Post Quantum Address Commitments (PACTs), a mechanism that lets users commit to future quantum-safe addresses before a migration deadline without moving funds on-chain immediately.
The advisory board delivers two clear conclusions: development of quantum-resistant migration tools should begin immediately, and Bitcoin users should be informed about potential risks and available migration paths well before quantum computing becomes a practical threat. The report comes amid Coinbase’s broader expansion efforts, as the company plans to integrate trading, lending, payments, derivatives, and AI-powered services into a unified financial ecosystem.