G7 central banks report on quantum tech risks, opportunities
The G7 Central Bank Quantum Technologies Working Group has published a report on the implications of quantum technologies for the financial system. The document establishes a shared analytical framework for central banking activities.
Securing the quantum future
Quantum technologies present both opportunities and risks for financial institutions, potentially impacting the security, resilience, and proper functioning of the financial system.
The report highlights their critical influence on the trust mechanisms underpinning the financial system, especially cryptographic systems securing digital communications and financial data.
Advances in quantum computing could challenge these security assumptions.
The 'harvest now, decrypt later' risk, where encrypted data collected today could be decrypted in the future, underscores the need for long-term data confidentiality.
This combination of identified risks, uncertain timelines, and potential systemic implications necessitates a proactive approach to data security.
Uneven preparedness levels could create system-wide vulnerabilities, emphasizing the importance of coordinated action among financial stakeholders.
Bank of Canada Governor Tiff Macklem noted, 'With continuing advances in quantum computing, the window to being quantum-ready is narrowing.'
He added that the report reflects collective efforts to improve understanding and promote preparedness for a resilient, secure quantum future.
New processing frontiers
The QTWG report takes an institutional, analytical, and non-prescriptive approach, providing a structured framework to understand the quantum technology landscape without operational recommendations.
It highlights new opportunities in information processing for complex problems, such as financial risk modelling and central bank forecasting.
However, the maturity and scope of these opportunities are currently uncertain.
The report proposes a shared analytical framework for future decisions, emphasizing close cooperation among central banks and financial stakeholders, and the development of common assessment frameworks.
The G7 Central Bank Quantum Technologies Working Group, established in 2025, comprises central banks from France, Canada, Germany, UK, Italy, Japan, the US, and the ECB.