Quantum Risk Rises: Coinbase Warns of Cryptocurrency Vulnerability

The Coinbase Quantum Advisory Council has issued a report warning that Bitcoin and other crypto networks need to begin planning for post-quantum migration. The council estimates that around 7 million BTC are currently quantum-vulnerable, with about 1.7 million of those coins held in legacy Pay-to-Public-Key addresses.

The report states that no current quantum computer can break the cryptography securing crypto assets today, but argues that the risk is strategically important due to the decentralized nature of these ecosystems and the time it takes to coordinate major upgrades.

The council suggests several paths forward, including a hard migration deadline, preserving rights and doing nothing, and middle-ground ideas such as rate-limiting or using zero-knowledge proofs. The key recommendation is to separate engineering work from the governance fight, allowing for early planning and testing of quantum-safe signatures while still debating how abandoned or vulnerable coins should be handled.