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Is the NSA Trying to Compromise Cryptocurrency Security Measures?
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Is the NSA Trying to Compromise Cryptocurrency Security Measures?

According to a renowned Bitcoin developer, the NSA is reportedly pushing for exclusively "quantum" cryptographic algorithms, potentially jeopardizing the crucial security redundancy in the cryptocurrency ecosystem.

Written by Charles Ledoux

Translated on October 6, 2025 at 14:32 by Simon Dumoulin

"Cover for NSA cryptocurrencies crypto"
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Post-Quantum Cryptography: Protection or Manipulation?

While the blockchain community scrambles to secure its networks against the quantum computing threat, suspicions about NSA involvement are reviving old fears. Peter Todd, a renowned cryptocurrency expert, claims the American intelligence agency isn’t so much trying to protect communications as it is attempting to introduce a cryptographic backdoor.

“The reasonable approach would be to combine traditional algorithms with post-quantum algorithms in a hybrid manner. The NSA is pushing for an exclusively quantum version, facilitating potential compromise,” says Todd.

What’s the Problem with Purely Quantum Cryptography?

Currently, the hybrid approach is favored by open source communities like Bitcoin. It combines a proven algorithm (ECDSA, RSA) with a post-quantum algorithm (Kyber, Dilithium). The goal is to make any attack more complex, requiring hackers to break both schemes.

However, the NSA is allegedly pushing for exclusively post-quantum algorithms at the IETF. A non-hybrid system eliminates this security redundancy. If the chosen algorithm is weakened, intentionally or not, the entire cryptographic structure collapses—a dream scenario for an actor with privileged access, such as an intelligence agency.

The Conflicted History Between NSA and Civilian Cryptography

Peter Todd’s concern fits into a long tradition of mistrust regarding the NSA’s role in the evolution of cryptographic standards. In the 90s, they attempted to impose the Clipper chip, with “legal” government access. More recently, they were accused of introducing vulnerabilities in standards approved by NIST.

Furthermore, a proposal called MODPOD, brought forward within the IETF, aims to redefine the governance rules for working groups. The main risk: pushing through a weakened cryptographic standard without real opposition, by eliminating objections deemed “uncivil” or “non-constructive.”

To summarize, here’s what you need to know:

  • Post-quantum cryptography is necessary… but not at any cost
  • The proposal for quantum-only algorithms raises legitimate concerns among experts
  • The industry must prioritize open, audited, and hybrid standards
  • The debate isn’t just technical—it’s also political, strategic, and a matter of national cybersecurity

On the same topic:

Charles Ledoux

Charles Ledoux

Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.

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