diff --git a/src/wallet/wallet.cpp b/src/wallet/wallet.cpp
index e631c86bb2be8..42cecfb541961 100644
--- a/src/wallet/wallet.cpp
+++ b/src/wallet/wallet.cpp
@@ -637,12 +637,9 @@ bool CWallet::EncryptWallet(const SecureString& strWalletPassphrase)
 
         // if we are using HD, replace the HD master key (seed) with a new one
         if (IsHDEnabled()) {
-            CKey key;
-            CPubKey masterPubKey = GenerateNewHDMasterKey();
-            // preserve the old chains version to not break backward compatibility
-            CHDChain oldChain = GetHDChain();
-            if (!SetHDMasterKey(masterPubKey, &oldChain))
+            if (!SetHDMasterKey(GenerateNewHDMasterKey())) {
                 return false;
+            }
         }
 
         NewKeyPool();
@@ -1308,17 +1305,14 @@ CPubKey CWallet::GenerateNewHDMasterKey()
     return pubkey;
 }
 
-bool CWallet::SetHDMasterKey(const CPubKey& pubkey, CHDChain *possibleOldChain)
+bool CWallet::SetHDMasterKey(const CPubKey& pubkey)
 {
     LOCK(cs_wallet);
     // store the keyid (hash160) together with
     // the child index counter in the database
     // as a hdchain object
     CHDChain newHdChain;
-    if (possibleOldChain) {
-        // preserve the old chains version
-        newHdChain.nVersion = possibleOldChain->nVersion;
-    }
+    newHdChain.nVersion = CanSupportFeature(FEATURE_HD_SPLIT) ? CHDChain::VERSION_HD_CHAIN_SPLIT : CHDChain::VERSION_HD_BASE;
     newHdChain.masterKeyID = pubkey.GetID();
     SetHDChain(newHdChain, false);
 
diff --git a/src/wallet/wallet.h b/src/wallet/wallet.h
index ccede600975db..4e7e1b57977b7 100644
--- a/src/wallet/wallet.h
+++ b/src/wallet/wallet.h
@@ -1056,9 +1056,10 @@ class CWallet : public CCryptoKeyStore, public CValidationInterface
     CPubKey GenerateNewHDMasterKey();
     
     /* Set the current HD master key (will reset the chain child index counters)
-       If possibleOldChain is provided, the parameters from the old chain (version)
-       will be preserved. */
-    bool SetHDMasterKey(const CPubKey& key, CHDChain *possibleOldChain = nullptr);
+       Sets the master key's version based on the current wallet version (so the
+       caller must ensure the current wallet version is correct before calling
+       this function). */
+    bool SetHDMasterKey(const CPubKey& key);
 };
 
 /** A key allocated from the key pool. */