HKMA Unveils Quantum Preparedness Index to Combat Financial Threats

Hong Kong's financial regulator has introduced a new assessment framework to help banks prepare for potential threats from quantum computing. The Hong Kong Monetary Authority (HKMA) released a white paper outlining the Quantum Preparedness Index, which scores the sector at 2.3 out of 10.

The index found that about half of surveyed institutions lack formal post-quantum planning in place. The regulator aims to raise the sector's readiness score to 10 by 2030 and is urging banks to begin with foundational work such as inventories of cryptographic assets, risk assessments, and migration planning.

The HKMA warns that sufficiently powerful quantum computers could eventually break RSA and elliptic-curve cryptography used in financial systems. This would enable attackers to decrypt protected data or forge digital signatures, mechanisms used to authorize transactions and verify identities within financial systems.

With Hong Kong's tokenization and distributed ledger initiatives gaining momentum, the regulator emphasizes practical urgency rather than alarm. The move aligns with the city's Fintech 2030 direction, which prioritizes tokenization as a key pillar. Banks in Hong Kong will likely need to monitor how the HKMA tracks QPI progress toward the 10/10 by 2030 target and whether additional guidance is released on timelines, assessment methods, and post-quantum migration priorities.