EU Adds Quantum Risk to Autumn Risk Picture: Exchanges, Custodians Must Plan Encryption Migration
The European Union's Supervisory Authorities have added quantum risk to their official autumn risk picture. This means that exchanges, custodians, and banks in the EU must plan for the migration of their encryption by the end of 2026.
According to the ESAs' paper, quantum computing has the potential to transform the financial sector, but it also creates significant risks by undermining cryptographic systems. The risk materializes faster than any commercially viable application, making it a pressing concern for the EU's financial institutions.
The ESAs have identified three weak points: dependence on providers and infrastructure outside the EU, new technologies involving AI and quantum computing, and the rapidly grown market for private credit. For crypto investors, the first two fields are relevant and interlock.