Journal of Financial Market Infrastructures
ISSN:
2049-5412 (online)
Editor-in-chief: Manmohan Singh
Quantum-readiness for the financial system: a road map
Raphael Auer, Donna Dodson, Angela Dupont, Maryam Haghighi, Nicolas Margaine, Danica Marsden, Sarah McCarthy and Andras Valko
Need to know
- Quantum computers may in the future break today’s widely used encryption, posing a major risk to the security of financial systems.
- It is essential to start the transition now, including raising awareness and preparing a cryptographic inventory.
- Post-quantum cryptography is a practical near-term solution, but its implementation in financial systems is complex, and it requires coordinated planning and execution.
- A secure transition demands more than algorithms replacement – it involves cryptographic agility, defense in depth, and a phased migration.
Abstract
Quantum computers may in the future break today’s widely used encryption. This paper provides a framework to support the financial system in the transition to quantum-safe cryptographic infrastructures. It emphasizes the need to start the transition today, with a broad awareness and a cryptographic inventory as critical foundations. While post-quantum cryptography offers a viable near-term solution, implementation challenges, including performance trade-offs and system integration, require coordinated planning. We caution against regarding this change as a simple algorithm replacement. Ensuring the continued security and resilience of the global financial system may involve cryptographic agility, defense in depth, hybrid models and phased migration. Quantum key distribution may hold long-term potential, but several national security agencies note that it still faces infrastructure challenges that limit its immediate applicability.
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