G7 Central Banks Warn Financial Sector to Prepare for Quantum Computing Risks

A G7 central bank working group has published its first public report urging financial institutions to begin preparing for the risks and opportunities that quantum technologies could bring. The document, titled 'Preparing for Quantum Technologies: Key Considerations for Financial Sector Participants', is the inaugural deliverable of the G7 Central Bank Quantum Technologies Working Group, in which the Bank of Canada participates alongside other major central banks. Its central concern is that sufficiently powerful quantum computers could eventually break the encryption methods that underpin much of today's financial and payments infrastructure, threatening the confidentiality and integrity of sensitive data and transactions. The report encourages banks, market infrastructures and other participants to assess their exposure, inventory where vulnerable cryptography is used, and plan a transition to quantum-resistant standards well before such machines become viable. It also notes potential benefits, including faster computation for certain risk and optimisation problems. While the timeline for large-scale quantum computing remains uncertain, regulators stress that migration to new cryptographic standards is complex and lengthy, making early preparation essential to preserving trust and stability in the financial system.