Quantum technology to break bank encryption in years, Yuen warns
HKMA Deputy Chief Executive Arthur Yuen urged banks to prepare for quantum computing risks and adopt post-quantum cryptography. Speaking at a joint seminar on July 6, Yuen announced that the HKMA will monitor banks' Quantum Preparedness Index as encryption threats approach within years.
Preparing cryptography for quantum threats
Advanced quantum technology is expected to possess the capability to break existing cryptographic encryption protocols within just a few years, according to Hong Kong Monetary Authority Deputy Chief Executive Arthur Yuen.
Speaking at a seminar on quantum resilience, Yuen stressed that banks must become Post-Quantum Cryptography (PQC) ready before initial attacks emerge.
The regulator will actively monitor each institution's Quantum Preparedness Index (QPI) to ensure adequate risk management.
While high-performance computing, artificial intelligence, and quantum capabilities expand analytical speed and financial scenario testing, greater connectivity simultaneously elevates cyber dependencies and operational risks.
Humans retain the lead in automated banking
Despite technological shifts, Yuen emphasized that banking remains fundamentally a people business built on trust and human interaction.
While automated systems and artificial intelligence improve operational efficiency, risks such as model bias, hallucinations, and misinformation necessitate a human-in-the-lead architecture.
To navigate this transformation, HKMA advocates a three-layered workforce framework covering technical depth, human soft skills, and sound banking judgment.
Urgency over compliance
The HKMA rightly treats quantum risks as an imminent threat rather than futuristic theory.
Yet, monitoring compliance metrics will accomplish little if banks treat staff reskilling as an afterthought.
True operational resilience demands immediate capital commitment to upgrade vulnerable cryptographic infrastructure.