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[TECHNOLOGY] · United States, United Kingdom, EU · 5 sources

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EU regulators warn quantum computing threatens blockchain security

European financial regulators have issued a formal warning regarding the systemic risks posed by quantum computing. The European Banking Authority, the European Securities and Markets Authority, and the European Insurance and Occupational Pensions Authority stated in a joint risk update that advanced quantum computers could undermine the cryptography securing blockchains, databases, and financial transactions.

Regulators cautioned that these threats might materialize before quantum technology reaches widespread commercial viability. A primary concern is the 'harvest now, decrypt later' strategy, where adversaries collect encrypted data today to decrypt it once powerful quantum hardware becomes available. This poses a specific risk to long-term sensitive financial information and certain blockchain assets, such as Bitcoin and Ethereum, which rely on vulnerable digital signatures.

In response, the EU NIS Cooperation Group has recommended that member states adopt post-quantum cryptography (PQC) migration strategies by the end of 2026. While technology leaders and standards bodies like NIST are moving toward quantum-resistant protocols, industry data suggests a significant gap in readiness; reports indicate that while most security leaders expect quantum advances to break current standards within a decade, a large majority of organizations lack formal post-quantum migration plans.

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Bitcoin · Ethereum · European Banking Authority · European Insurance and Occupational Pensions Authority · European Securities and Markets Authority · Google · IBM · National Institute of Standards and Technology

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