Europe’s financial sector must start preparing for the potential risks posed by quantum computers, which could break current encryption methods that protect sensitive data, a Europol-led body warned on Friday. The group, formed to address this emerging threat, urged financial institutions to begin proactive measures to safeguard customer confidentiality, authentication processes, and digital signatures from quantum computing capabilities expected within the next 10 to 15 years—although this timeline could accelerate.
Quantum computers are fundamentally different from traditional computers, using subatomic particles to perform calculations much more efficiently. This ability could eventually compromise cryptographic systems widely used in the financial industry. The Quantum Safe Financial Forum, a group formed by Europol, includes key stakeholders such as central banks from the U.S., Europe, and the UK, as well as major financial institutions like Allianz, Santander, Barclays, BNP Paribas, Mastercard, and Moody’s.
The forum has called for no immediate new regulation, emphasising that existing EU data protection laws already require financial institutions to safeguard data. Instead, the group recommended that financial institutions begin assessing which encryption standards may be vulnerable to quantum computing, identify which standards are likely to remain secure, and develop a transition plan to mitigate future risks.
Additionally, the forum warned that criminals might already be storing encrypted data with plans to decrypt it once quantum computing becomes powerful enough. This foresight is essential for preventing long-term data breaches.
The U.S. government has set a target for its federal agencies to be “quantum resistant” by 2035, and Europe’s financial sector is urged to follow suit in preparing for a quantum-powered future.
