EU Regulators Sound Alarm on Quantum Threat to Blockchain Security
European financial regulators have issued a warning that quantum computing could threaten blockchain security before the technology becomes widely commercially available. The Joint Committee of the European Supervisory Authorities, which includes the EBA, ESMA and EIOPA, said in its Autumn 2026 risk update that advanced quantum systems could weaken cryptography protecting transactions, communications, databases and distributed ledgers.
The warning comes as financial institutions may face security risks before quantum computing reaches mass adoption. Regulators want preparation to begin well in advance, despite the technology also supporting financial applications such as pricing, compliance monitoring and fraud detection.
Bitcoin's main exposure involves digital signatures built on public-key cryptography, which protects ownership and authorizes transactions across the blockchain. A sufficiently capable fault-tolerant quantum computer using algorithms such as Shor's could theoretically derive private keys from exposed public keys.