Bitcoin has entered a period where preparations for quantum-resistant security should begin immediately, according to a new report from Coinbase’s independent advisory board of cryptography experts. Summary Coinbase’s advisory board says Bitcoin should begin preparing for a transition to quantum-resistant cryptography now. The report does not endorse freezing vulnerable BTC, leaving the decision to the Bitcoin community. Researchers estimate that between 1.7 million and 5 million BTC could face future quantum-related risks. According to the report published by Coinbase’s advisory board, the Bitcoin community should start developing and implementing a migration path to post-quantum cryptography now rather than waiting for consensus on how to handle vulnerable legacy coins. The June report, authored by a group that includes Ethereum Foundation researcher Justin Drake, states that quantum computers do not currently threaten Bitcoin. Even so, the authors argue that uncertainty around future advances in quantum computing warrants early planning to avoid disruption later. At the center of the discussion is the growing debate over Bitcoin held in addresses protected by existing ECDSA and Schnorr signatures. According to the report, some community members support establishing a migration deadline after which those signature schemes would no longer be accepted, effectively freezing coins that have not moved to quantum-resistant addresses. Supporters of that approach argue it would prevent future quantum attackers from gaining control of large amounts of BTC and potentially affecting the market. Others within the Bitcoin community take the opposite view. As outlined in the report, critics argue that rendering coins unspendable would amount to confiscation of private property and would conflict with Bitcoin’s long-standing principles of immutability and user control over assets. The report leaves the governance decision to Bitcoin users Rather than endorsing either position, Coinbase’s advisory board said the question of whether vulnerable coins should eventually be frozen, burned, or left untouched must be decided by the Bitcoin community itself. Instead of backing any of the competing proposals, the authors declined to recommend a preferred outcome for legacy Bitcoin holdings. “We refrain from providing any specific recommendation regarding the treatment of vulnerable coins.” On the governance question, the report argued that the final outcome should emerge through Bitcoin’s consensus process rather than being dictated by a small group of researchers. “The decision should be made by the Bitcoin community.” Several figures cited in the report illustrate why the debate has become increasingly significant. According to the advisory board, roughly 1.7 million BTC are held in older pay-to-public-key addresses whose public keys are already exposed, making them potentially vulnerable to future quantum attacks. The report notes that many of those coins are believed to belong to lost wallets, including holdings commonly attributed to Bitcoin creator Satoshi Nakamoto. Drawing on research from Project11, the report also notes that as many as 5 million BTC could face exposure through address reuse, although a substantial portion of those holdings are believed to remain under the control of active users and institutions. Technical proposals are already being explored Alongside the debate over legacy coins, the report outlines several proposals designed to ease Bitcoin’s eventual transition to quantum-resistant security. One proposal, known as Hourglass, would limit how many BTC from vulnerable addresses could be moved in each block, reducing the risk of a sudden influx of recovered coins entering circulation. Another proposal, BIP-361, would allow users to prove ownership through post-quantum cryptographic methods even after legacy signatures are retired. The report also discusses Post Quantum Address Commitments, or PACTs, a mechanism that would let users commit to future quantum-safe addresses before a migration deadline without immediately moving funds on-chain. While the advisory board stopped short of recommending any single solution, it delivered two clear conclusions. According to the report, development of quantum-resistant migration tools should begin immediately, and Bitcoin users should receive clear information about potential risks and available migration paths well before quantum computing becomes a practical threat. The publication comes as Coinbase pursues a wider expansion of its platform, with the company recently outlining plans to integrate trading, lending, payments, derivatives, and AI-powered services into a unified financial ecosystem.
