Coinbase, which holds approximately 5% of all bitcoin, published recommendations on October 14 for Bitcoin to adopt post-quantum cryptographic signatures and staged migration protocols to defend against potential future quantum computers.
The exchange’s blog post outlined two specific proposals: P2MR (BIP-360) and P2TRv2, both designed to enable flexible signature support. Bitcoin’s current security relies on ECDSA and Schnorr signature methods, which current computers cannot crack. A cryptographically relevant quantum computer (CRQC) could reverse-engineer private keys from public keys and drain wallets.
Google Researchers have projected that a cryptographically relevant quantum computer could exist by 2029. Coinbase framed the timeline as urgent. “Bitcoin consensus changes, and ecosystem migrations can take years,” the exchange stated in its recommendation, adding that defenses should begin “well ahead of any CRQC announcement.”
Why Coinbase is pushing now
Coinbase’s clients include banks, asset managers, and hedge funds. The exchange’s holdings represent a material stake in Bitcoin’s long-term security. The decentralized nature of Bitcoin makes implementing changes difficult. Any protocol upgrade requires broad consensus among developers and miners, a process that historically spans months or years.
Coinbase’s proposal aims to avoid a scenario where quantum computers arrive before Bitcoin’s defenses are in place. The exchange acknowledges that contentious debates exist over how to handle dormant or late-migrating wallets and lost coins, but proposes those questions be addressed separately to avoid delaying broader quantum protections.
The technical approach
Post-quantum cryptography refers to new signature methods designed to withstand quantum attacks. P2MR and P2TRv2 would allow Bitcoin to support these new methods while maintaining backward compatibility with existing transactions during a transition period.
The recommendations do not specify a timeline for when Bitcoin consensus changes might occur, nor do they detail the complete technical specifications of the two proposals beyond their flexibility claims. Bitcoin developers are considering quantum defense proposals, though Coinbase’s recommendations represent the first major institutional push for action on the specific timeline the exchange outlined.
