The HKMA has reported a low score of 2.3 out of 10 for Hong Kong banks' readiness for quantum computing, highlighting significant gaps in preparedness.
The Hong Kong Monetary Authority (HKMA) has expressed alarm over the banking sector's readiness for quantum computing, as indicated by a disconcertingly low score of 2.3 out of 10 on its newly introduced Quantum Preparedness Index.
HKMA Highlights Need for Quantum Readiness
In a report released at the eighth FiNETech conference, the HKMA revealed that many banks are still in the early stages of understanding quantum technology risks. The index, based on a recent survey, showed that while 68% of banks have some awareness or are in the planning phases, nearly half have yet to develop formal strategies for transitioning to post-quantum cryptography.
Despite discussions at the board level in about 50% of banks, only one-third have begun exploring or testing quantum technologies. The HKMA aims to raise the sector's preparedness score to 10 by 2030 through various tools, workshops, and training initiatives, as global regulators emphasize the need for simultaneous advancements in quantum technology and security measures.
This lack of readiness is particularly concerning, given the potential threats posed by quantum computing to modern financial systems. The Bank for International Settlements has identified "harvest now, decrypt later" attacks as a significant risk, where attackers could store encrypted data now and decrypt it later with advanced quantum capabilities.
Although powerful quantum machines that could threaten banking security do not yet exist, experts warn that the risk could emerge as early as 2029. In response, the HKMA is collaborating with the Hong Kong University of Science and Technology to develop a post-quantum cryptography toolkit and is conducting workshops to enhance banks' capabilities in this area.
The HKMA's efforts align with recent U.S. initiatives, including executive orders from President Donald Trump aimed at accelerating quantum computing development and mandating the transition to post-quantum cryptography by 2030-31.
