Huoxing Finance reports that on June 15, the first public report released by the G7 Central Bank Quantum Technology Working Group (QTWG) stated that quantum computing technology could have profound implications for the global financial system, particularly by introducing structural challenges in data encryption and cybersecurity. The working group, established in 2025 and co-led by the Bank of France and the Bank of Canada, includes major central banks such as the Federal Reserve, the European Central Bank, the Bank of England, the Bank of Japan, and those of Germany and Italy. The report notes that although quantum computers with "cryptographic-breaking" capabilities have not yet emerged, the industry broadly agrees that the likelihood of their appearance within the next decade is increasing, posing a potential risk to existing financial infrastructure reliant on classical cryptographic algorithms. One core risk identified is the "harvest now, decrypt later" strategy—long-term storage of currently encrypted financial data to be decrypted once quantum computing capabilities mature, which could threaten the long-term security of financial system data. The report recommends that financial institutions across countries proactively map their dependencies on current cryptographic systems, gradually assess the feasibility of transitioning to post-quantum cryptography, and enhance cross-institutional coordination to reduce exposure to systemic risk. On the opportunity side, quantum computing has the potential to enhance financial institutions' computational capabilities in areas such as risk modeling, portfolio optimization, macroeconomic forecasting, and stress testing; however, its practical application still depends on technological maturity and scalability progress. Analysts view this report as marking the G7 central banks’ systematic integration of quantum technology into their financial stability assessment frameworks, potentially driving long-term upgrades to global financial infrastructure in terms of encryption and computational architecture.
G7 Central Banks Warn of Long-Term Risks to Financial Encryption from Quantum Computing
MarsBitShare
Summary
The G7 central banks have raised concerns about the long-term impact of quantum computing on financial encryption, including homomorphic encryption. The Quantum Technology Working Group (QTWG) report, released on June 15, 2026, highlights data security risks and urges institutions to explore post-quantum solutions. The report warns of the "harvest now, decrypt later" strategy and notes that quantum computers may emerge within the next decade. Proof of Work (PoW) systems are also under scrutiny, as central banks from France, Canada, the U.S., and other nations advocate for early preparedness. The document also acknowledges potential quantum benefits in risk modeling, though practical application remains contingent on technological advancements.
Source:Show original
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.
Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.