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Project 11 is offering 1 BTC to whoever cracks the longest Bitcoin key

Quantum computing research firm Project Eleven has launched a competition to see just how much of a threat quantum computing currently poses to Bitcoin.

Launching the competition on April 16, Project Eleven said it is offering 1 Bitcoin (BTC) to whoever cracks the biggest chunk of a Bitcoin key using a quantum computer within the next year. 

Project Eleven said the purpose of the “Q-Day Prize” is to test “how urgent the threat” of quantum is to Bitcoin and to find quantum-proof solutions to secure Bitcoin over the long term.

“10 million+ addresses have exposed public keys. Quantum computing is steadily progressing. Nobody has rigorously benchmarked this threat yet,” Project Eleven wrote on X on April 16.

More than 6 million Bitcoin — worth around $500 billion — could be at risk if quantum computers become powerful enough to crack elliptic curve cryptography (ECC) keys, Project Eleven said.

Participants can register as individuals or as a team and have until April 5, 2026, to complete the task. The prize winner will win 1 Bitcoin, currently worth $84,100.

Project 11 is offering 1 BTC to whoever cracks the longest Bitcoin key
Source: Project Eleven

The aim is to run Shor’s algorithm on a quantum computer to crack as many bits of a Bitcoin key as possible, acting as a proof-of-concept that the technique could scale to crack a full, 256-bit Bitcoin key once the necessary compute is available. 

“The mission: break the largest ECC key possible using Shor’s algorithm on a quantum computer. No classical shortcuts. No hybrid tricks. Pure quantum power,” Project Eleven said.

“You don’t need to break a Bitcoin key. A 3-bit key would be big news,” it added.

No ECC key used in real-world applications has ever been cracked, noted Project Eleven, adding that the winner could “go down in cryptography history.”

Project Eleven noted that several online platforms offer quantum computing access, such as Amazon Web Services and IBM.

Project 11 is offering 1 BTC to whoever cracks the longest Bitcoin key
Source: Jameson Lopp

Related: Bitcoin’s quantum-resistant hard fork is inevitable — It’s the only chance to fix node incentives

Current estimates suggest that around 2,000 logical qubits (error-corrected) would be enough to break a 256-bit ECC key, Project Eleven noted.

IBM’s Heron chip and Google’s Willow can currently do 156 and 105 qubits — significant enough to cause concern, according to Project Eleven, which believes a 2,000-qubit quantum system could be developed within the next decade.

Quantum threat to Bitcoin is real but there’s time, Bitcoiners say

Bitcoin cypherpunk Jameson Lopp recently said the question of how concerned the industry should be about quantum computing is currently “unanswerable.”

“I think it’s far from a crisis, but given the difficulty in changing Bitcoin it’s worth starting to seriously discuss,” Lopp said in a March 16 post.

In February, Tether CEO Paolo Ardoino said the concern is well-founded but is confident that quantum-proof Bitcoin addresses will be implemented well before any “serious threat” emerges.

Project 11 is offering 1 BTC to whoever cracks the longest Bitcoin key
Source: Paolo Ardoino

Magazine: Bitcoin vs. the quantum computer threat: Timeline and solutions (2025–2035)

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Stablecoins' dominance due to limitations of US banking  — Jerald David

Stablecoins rose to popularity as a result of limitations in the US financial system — particularly restricted banking hours and the lack of a non-USD trading pair, according to Jerald David, president of Arca Labs.

“So we start thinking about the reason why, we start talking about the nine-to-five banking hours,” David said during a panel at TokenizeThis 2025 event on April 16.

The panel discussion centered on yieldcoins or, essentially, the rising of cryptocurrencies that can generate yield through holding, staking or lending, like stablecoins.

“Well, nine-to-five banking hours don’t work, right? There are implementations right now of payment systems that are going to come to market very soon, that are a good combination of both yield-bearing instruments as well as stabletokens,” David said.

According to David, the need for stablecoins stems from the fact that the traditional US banking infrastructure doesn’t support round-the-clock transactions. “And this industry, as we all know, is a 24-hour industry.”

KYC for stablecoins

Know Your Customer procedures were a significant topic at the panel. One representative from Figure Markets said that everyone who owns a yield-bearing stablecoin would have to be KYC-ed for tax reasons.

But David pointed out that stablecoins have several use cases beyond yield generation, including payments. “Using this stable token to buy a cup of coffee is not something that really should require AML or KYC for somebody.”

Nick Carmi, head of exchange at Figure Markets, suggested that part of the solution could be a trust-based KYC system that allows users to carry their credentials across platforms. KYC is a process used by financial institutions to verify a user’s identity. It’s meant to prevent fraud, money laundering, and other illegal activities by ensuring users are who they claim to be.

Currently, users must complete separate KYC checks for each financial institution or service they use, creating friction and frustration — especially for those navigating multiple platforms or exploring different crypto ecosystems.

Magazine: Bitcoin payments are being undermined by centralized stablecoins

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Panama's capital to accept crypto for taxes, municipal fees

Panama’s capital city will accept cryptocurrency payments for taxes and municipal fees, including bus tickets and permits, Panama City mayor Mayer Mizrachi announced on April 15, joining a growing list of jurisdictions globally that have voted to accept such payments.

Panama City will begin accepting Bitcoin (BTC), Ether (ETH), Circle’s USDC (USDC), and Tether’s USDt (USDT) stablecoin for payment once the crypto-to-fiat payment rails are established, Mizrachi posted on the X platform.

Mizrachi said previous administrations attempted to push through similar legislation but failed to overcome stipulations requiring the local government to accept funds denominated in US dollars.

In a translated statement, the Panama City mayor said that the local government partnered with a bank that will immediately convert any digital assets received into US dollars, allowing the municipality to accept crypto without introducing new legislation.

Panama City joins a growing list of global jurisdictions on the municipal and state level accepting cryptocurrency payments for taxes, exploring Bitcoin strategic reserves to protect public treasuries from inflation and passing pro-crypto policies to attract investment.

Taxes, Panama, Bitcoin Adoption
Source: Mayer Mizrachi

Related: New York bill proposes legalizing Bitcoin, crypto for state payments

Municipalities and states embrace digital assets

Several municipalities and territories around the globe already accept crypto for tax payments or are exploring various implementations of blockchain technology for government spending.

The US state of Colorado started accepting crypto payments for taxes in September 2022. Much like Panama City said it will do, Colorado immediately converts the crypto to fiat.

In December 2023, the city of Lugano, Switzerland, announced taxes and city fees could be paid in Bitcoin, which was one of the developments that earned it the reputation of being a globally recognized Bitcoin city.

The city council of Vancouver, Canada, passed a motion to become “Bitcoin-friendly city” in December 2024. As part of that motion, the Vancouver local government will explore integrating BTC into the financial system, including tax payments.

North Carolina lawmaker Neal Jackson introduced legislation titled “The North Carolina Digital Asset Freedom Act” on April 10. If passed, the bill will recognize cryptocurrencies as an official form of payment that can be used to pay taxes.

Magazine: Crypto City: The ultimate guide to Miami

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The only office within the US State Department that monitors foreign disinformation is to be eliminated, according to US Secretary of State Marco Rubio, confirming reporting by MIT Technology Review.

The Counter Foreign Information Manipulation and Interference (R/FIMI) Hub is a small office in the State Department’s Office of Public Diplomacy that tracks and counters foreign disinformation campaigns. 

In shutting R/FIMI, the department’s controversial acting undersecretary, Darren Beattie, is delivering a major win to conservative critics who have alleged that it censors conservative voices. Created at the end of 2024, it was reorganized from the Global Engagement Center (GEC), a larger office with a similar mission that had long been criticized by conservatives who claimed that, despite its international mission, it was censoring American conservatives. In 2023, Elon Musk called the center the “worst offender in US government censorship [and] media manipulation” and a “threat to our democracy.” 

The culling of the office leaves the State Department without a way to actively counter the increasingly sophisticated disinformation campaigns from foreign governments like those of Russia, Iran, and China.

Shortly after publication, employees at R/FIMI received an email, inviting them to an 11:15AM meeting with Beattie, where employees were told that the office and their jobs have been eliminated. 

Have more information on this story or a tip for something else that we should report? Using a non-work device, reach the reporter on Signal at eileenguo.15 or tips@technologyreview.com.

Then, Secretary of State Marco Rubio confirmed our reporting in a blog post in The Federalist, which had sued GEC last year alleging that it had infringed on its freedom of speech. “It is my pleasure to announce the State Department is taking a crucial step toward keeping the president’s promise to liberate American speech by abolishing forever the body formerly known as the Global Engagement Center (GEC),” he wrote. And he told Mike Benz, a former first-term Trump official who also reportedly has alt right views, during a YouTube interview, “We ended government-sponsored censorship in the United States through the State Department.”  

Censorship claims

For years, conservative voices both in and out of government have accused Big Tech of censoring conservative views—and they often charged GEC with enabling such censorship. 

GEC had its roots as the Center for Strategic Counterterrorism Communications (CSCC), created by an Obama-era executive order, but shifted its mission to fight propaganda and disinformation from foreign governments and terrorist organizations in 2016, becoming the Global Engagement Center. It was always explicitly focused on the international information space, but some of the organizations that it funded also did work in the United States. It shut down last December after a measure to reauthorize its $61 million budget was blocked by Republicans in Congress, who accused it of helping Big Tech censor American conservative voices. 

R/FIMI had a similar goal to fight foreign disinformation, but it was smaller: the newly created office had a $51.9 million budget, and a small staff that, by mid-April, was down to just 40 employees, from 125 at GEC. In a Wednesday morning meeting, those employees were told that they would  be put on administrative leave and terminated within 30 days. 

With the change in administrations, R/FIMI had never really gotten off the ground. Beattie, a controversial pick for undersecretary—he was fired as a speechwriter during the first Trump administration for attending a white nationalism conference, has suggested that the FBI organized the January 6 attack on Congress, and has said that it’s not worth defending Taiwan from China—had instructed the few remaining staff to be “pencils down,” one State Department official told me, meaning to pause in their work. 

The administration’s executive order on “countering censorship and restoring freedom of speech” reads like a summary of conservative accusations against GEC:

“Under the guise of combatting “misinformation,” “disinformation,” and “malinformation,” the Federal Government infringed on the constitutionally protected speech rights of American citizens across the United States in a manner that advanced the Government’s preferred narrative about significant matters of public debate.  Government censorship of speech is intolerable in a free society.”

In 2023, The Daily Wire, founded by conservative media personality Ben Shapiro, joined The Federalist in suing GEC for allegedly infringing on the company’s first amendment rights by funding two non-profit organizations, the London-based Global Disinformation Index and New York-based NewsGuard, that had labeled The Daily Wire as “unreliable,” “risky,” and/or (per GDI), susceptible to foreign disinformation. Those projects were not funded by GEC. The lawsuit alleged that this amounted to censorship by “starving them of advertising revenue and reducing the circulation of their reporting and speech,” the lawsuit continued. 

In 2022, the Republican attorneys general of Missouri and Louisiana named GEC among the federal agencies that, they alleged, were pressuring social networks to censor conservative views. Though the case eventually made its way to the Supreme Court, which found no First Amendment violations, a lower court had already removed GEC’s name from the list of defendants, ruling there was “no evidence” that GEC’s communications with the social media platforms had gone beyond “educating the platforms on ‘tools and techniques used by foreign actors.’”

The stakes

The GEC—and now R/FIMI—was targeted as part of a wider campaign to shut down groups accused of being “weaponized” against conservatives. 

Conservative critics railing against what they have alternatively called a disinformation- or censorship- industrial complex have also taken aim at the Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency (CISA) and the Stanford Internet Observatory, a prominent research group that conducted widely cited research on the flows of disinformation during elections. 

CISA’s former director, Chris Krebs, was personally targeted in an April 9 White House memo, while in response to the criticism and millions of dollars in legal fees, Stanford University shuttered the Stanford Internet Observatory ahead of the 2024 presidential elections.  

But this targeting comes at a time when foreign disinformation campaigns—especially by Russia, China, and Iran—have become increasingly sophisticated. 

According to one estimate, Russia spends $1.5 billion per year on foreign influence campaigns. In 2022, the Islamic Republic of Iran Broadcasting, that country’s primary foreign propaganda arm, had a $1.26 billion budget. And a 2015 estimate suggests that China spent up to $10 billion per year on media targeting non-Chinese foreigners—a figure that has almost certainly grown.

In September 2024, the Justice Department indicted two employees of RT, a Russian state-owned propaganda agency, in a $10 million scheme to create propaganda aimed at influencing US audiences through a media company that has since been identified as the conservative Tenet Media. 

The GEC was one effort to counter such campaigns. Some of its recent projects have included developing AI models to detect memes and deepfakes and exposing Russian propaganda efforts to influence Latin American public opinion against the war in Ukraine. 

By law, the Office of Public Diplomacy has to provide Congress with 15-day advance notice of any intent to reassign any funding allocated by Congress over $1 million. Congress then has time to respond, ask questions, and challenge the decisions—though to judge from its record with other unilateral executive-branch decisions to gut government agencies, it is unlikely to do so. 

We have reached out to the State Department for comment. 

This story was updated at 11:55am to note that R/FIMI employees have confirmed that the office closed.
This story was updated at 12:37am to include confirmation about R/FIMI’s shutdown from Marco Rubio.
This story was updated at 6:10pm to add an identifier for Mike Benz.

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