G7 Central Banks Warn Quantum Computers Threaten Global Financial Security
Group of Seven (G7) central banks said quantum computers could eventually break the conventional public-key cryptography widely used by financial institutions. Bank transactions, customer identities and cross-border payments all rely on encryption. Without timely upgrades, a single cybersecurity incident could escalate into a systemic threat to the global financial system.
The G7 central banks recently published their first report on quantum-computing risks, warning that a practical quantum computer could break modern encryption within 10 years. The report highlighted the “harvest now, decrypt later” strategy, in which hackers steal encrypted data today and wait for the technology to mature before decrypting it. The publication date and any amounts involved were not disclosed. The report urged financial institutions to begin inventories immediately and migrate to post-quantum cryptography.
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The history behind this eventTaiwan, US Push Financial Sector Toward Post-Quantum Security
Advances in quantum computing could eventually break encryption that underpins financial transactions, identity verification and online communications. The threat extends beyond cybersecurity: compromised cryptographic systems could erode trust among banks, customers and markets. Attackers may also collect encrypted data now and decrypt it once quantum capabilities mature, increasing pressure on financial institutions and their technology suppliers to begin a complex, multi-year transition before current protections become vulnerable.
The US Treasury and Taiwan’s Financial Supervisory Commission have established response groups and issued migration guidance for the financial sector. Institutions are being steered to inventory cryptographic assets, assess quantum exposure and prepare to deploy post-quantum cryptography, or PQC, with readiness targeted by 2035. The timetable makes migration a major enterprise transformation challenge, as banks must coordinate upgrades across core systems, vendors and cross-border transaction networks while maintaining security and operational continuity.
Quantum Threat Puts Financial Systems on Front Line
Quantum computers could eventually break the asymmetric encryption underpinning bank authentication, transaction signatures and the protection of personal data. Because financial institutions operate large, interconnected technology estates, replacing cryptographic infrastructure could take years. Experts say the potential damage extends beyond cryptocurrency, threatening the broader system of digital trust on which payments, customer records and government-linked financial services depend.
A survey by the Global Risk Institute found a rising likelihood that quantum computers will defeat widely used encryption within the next several years, placing banks among the sectors most exposed. Specialists are urging financial institutions and governments to treat the transition like the Y2K remediation effort: identify vulnerable systems now, prepare migration plans for post-quantum cryptography and begin coordinated upgrades before existing protections become obsolete.
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