Europe's Quantum Warning: Bitcoin Wallets Face Greater Risk

European regulators have issued a warning about the potential threat of quantum computers to some encryption systems, including those used in Bitcoin wallets. The joint committee of the European Banking Authority, the European Securities and Markets Authority, and the European Insurance and Occupational Pensions Authority expressed concern that advanced quantum computers could break certain cryptographic systems before they are ready for commercial use.

The report does not indicate that a quantum computer capable of breaking Bitcoin's security exists today. Instead, it warns that waiting for widespread commercial use may not be sufficient to prepare for the threat.

A significant factor in determining a wallet's risk is whether its public key is visible on-chain. Older output types and reused addresses whose keys have previously been exposed are more vulnerable to attack by a powerful quantum computer.

According to an estimate, approximately 6.9 million BTC could be at risk if the ability to break Bitcoin's cryptography is achieved. This amount is valued at around $586 billion, but it is essential to note that this figure represents potential exposure dependent on future attack capabilities, not a realized loss or definitive total of funds that can be stolen today.