Encrypted Cloud Backup

An encrypted cloud backup is a wallet feature that stores recovery material in a personal cloud account — a phone maker's drive or a general storage service — encrypted under a password or a device credential, so the wallet can be restored on a new phone without the owner ever handling a written phrase. It exists because most people lose access by losing a device rather than by being attacked, and a backup nobody writes down is a backup that does not exist. The trade-off is that it converts a physical secret into an account secret: whoever can reach both the cloud account and the encryption password can restore the wallet, which brings the strength of that password, the security of the cloud login and its whole account-recovery process — including anything a phone number can reset — inside the threat model. Where it is used it suits spending balances rather than long-term holdings, and the cloud account itself needs a second factor that is not an SMS code.