Insider Brief
The Quantum Economy Development Consortium (QED-C) has released a report on quantum technologies for securing financial messages, highlighting the potential impact of quantum computing and networks in the financial sector and recommending strategies to achieve security. Key recommendations include federal government support for the implementation of post-quantum cryptography (PQC) algorithms, strengthening in-house quantum expertise within financial institutions, and using a combined approach of quantum key distribution (QKD) and PQC for enhanced security. A workshop held by QED-C’s Use Case Technical Advisory Committee identified use cases with high impact for quantum-resistant technologies, such as secure cross-border transactions and post-quantum transport layer security, and provided practical insights for minimizing risks from quantum threats.
PRESS RELEASE — The Quantum Economy Development Consortium (QED-C), the world’s leading coalition of quantum technology pioneers, today released a report, “Quantum Technologies for Securing Financial Messages,” exploring the potential impact of quantum computing, networks, and communications in the financial sector. The new report evaluates quantum-resistant technologies and provides guidance on strategies to achieve security across the industry.
The report’s recommendations include:
Federal agencies should support the transition to post-quantum cryptography (PQC) algorithms by sharing information and resources with financial institutions and by providing grants to help financial institutions implement new algorithms. The financial industry should develop in-house quantum expertise to raise awareness of the benefits and risks of quantum technology, as well as hire quantum networking and security experts to help conduct an inventory of quantum-vulnerable crypto assets and implement PQC standards. While quantum key distribution (QKD) and PQC each have their own benefits and limitations, a combined approach of both technologies would provide a higher level of security than either approach alone. Stakeholders in financial services, communications, quantum, and government should work together to advance a combined approach.
“The advent of quantum computing creates new cybersecurity challenges for financial institutions because in the future quantum computing will be powerful enough to break many of the encryption algorithms currently used to protect data and communications,” said Celia Merzbacher, QED-C Executive Director. “We thank all of the QED-C members and industry leaders who collaborated on this very timely assessment, and we also appreciate the wealth of information this report provides to those making critical security decisions in the financial sector.”
In February 2024, 48 stakeholders from finance, quantum technology, government, and academia, including leaders from Accenture, ID Quantique, and others, participated in a workshop hosted by the QED-C Use Case Technical Advisory Committee (TAC). During the workshop, participants identified high feasibility and high impact use cases for applying quantum-safe technologies, including safer cross-border transactions, physical infrastructure for enabling security, third-party validation of financial institutions’ quantum security postures, post-quantum transport layer security, and quantum communication service providers.
The report includes actionable insights to minimize the risks posed by collect now, decrypt later threats, combine security-enhancing technologies, and leverage third-party service providers to enable timely risk mitigation for small agencies.
For more information or to download a copy of the new report, “Quantum Technologies for Securing Financial Messages,” please visit quantumconsortium.org/financial24/.
