The Quantum Challenge: Implications and Strategies for a Secure Financial System

Abstract

Quantum computing (QC) is an emerging technology that can potentially solve long-standing computational problems considered intractable with classical computers, including encryption algorithms that protect communication channels and digital assets. While the financial sector is strategically positioned to leverage the benefits of QC, the diffusion of QC may turn into a vulnerability, as encryption protocols underpin the security of communication channels and the integrity of digital assets, including central bank digital currencies (CBDCs). Where there are numerous technological solutions that are not always interoperable or easy to integrate into the existing IT and network infrastructures, the transition to an ecosystem that is robust against QC attacks requires supranational strategies that support the adoption of mutually compatible standards. This paper provides an overview of QC and the possible implications of its diffusion for the security and resilience of the financial sector. It also identifies the most appropriate international cooperation forums for designing and monitoring the implementation of transition plans for the financial sector. 

Keywords: quantum computing, quantum agility, cryptography, technical standards

JEL Classification: F42, F50, L63, L86, L96