Quantum computers pose a strategic threat to the security of cryptocurrencies and banks: G7 financial authorities believe that 'Q-day', the moment when these machines can break current cryptographic algorithms, could happen around 2035, and they're calling for a shift to post-quantum cryptography right now.
Impact of quantum computers on cryptos and banks
- Cryptocurrencies:
Blockchains rely on algorithms like RSA or ECDSA for digital signatures. A sufficiently powerful quantum computer could crack these keys, jeopardizing wallets and transactions. The major risk is the so-called Harvest now, decrypt later attack: encrypted data collected today could be decrypted in the future.
- Banks:
Interbank payment systems and critical infrastructures (SWIFT, SEPA, etc.) use public cryptography. Their vulnerability to quantum computers puts global financial stability at risk. G7 central banks view this threat as systemic.
Roadmap for the financial sector
- Transition to post-quantum cryptography (PQC):
- Critical systems to be migrated by 2030-2032.
- Complete sector migration by 2035.
- Preparation underway:
- Bank of France, ACPR, and the European Commission are already working on PQC standards.
- International cooperation to harmonize protocols and avoid gaps between jurisdictions.
Opportunities and threats
- Opportunities:
- More accurate financial forecasting models thanks to quantum computing power.
- Large-scale portfolio optimization and risk management.
- Threats:
- Breaking public keys → loss of trust in cryptos.
- Compromise of digital signatures → transaction falsification.
- Interception of bank communications → weakening of the financial system.
Impact of quantum computers on cryptos and banks
- Cryptocurrencies:
Blockchains rely on algorithms like RSA or ECDSA for digital signatures. A sufficiently powerful quantum computer could crack these keys, jeopardizing wallets and transactions. The major risk is the so-called Harvest now, decrypt later attack: encrypted data collected today could be decrypted in the future.
- Banks:
Interbank payment systems and critical infrastructures (SWIFT, SEPA, etc.) use public cryptography. Their vulnerability to quantum computers puts global financial stability at risk. G7 central banks view this threat as systemic.
Roadmap for the financial sector
- Transition to post-quantum cryptography (PQC):
- Critical systems to be migrated by 2030-2032.
- Complete sector migration by 2035.
- Preparation underway:
- Bank of France, ACPR, and the European Commission are already working on PQC standards.
- International cooperation to harmonize protocols and avoid gaps between jurisdictions.
Opportunities and threats
- Opportunities:
- More accurate financial forecasting models thanks to quantum computing power.
- Large-scale portfolio optimization and risk management.
- Threats:
- Breaking public keys → loss of trust in cryptos.
- Compromise of digital signatures → transaction falsification.
- Interception of bank communications → weakening of the financial system.