EU Regulators Sound Alarm on Quantum Threat to Blockchain Security
Europe's top financial watchdogs have sounded the alarm on a potential threat to blockchain security. The European Banking Authority (EBA), the European Securities and Markets Authority (ESMA), and the European Insurance and Occupational Pensions Authority (EIOPA) warned that advanced quantum computing could break blockchain encryption, putting custody and transaction integrity at risk.
The warning comes in their Autumn 2026 risk update, presented to the EU Financial Stability Table on September 10. The regulators noted that quantum computing 'could soon transform the financial sector in key areas' but also create major risks by undermining cryptography systems used to secure communications, transactions, databases, and blockchains.
The ESAs stated that these risks could materialize faster than any commercially viable application of quantum computing, potentially arriving before its promised benefits. The warning sits within a broader assessment of external dependencies and private credit as key vulnerabilities for the EU financial system.