Hong Kong banks can no longer ignore the quantum threat
HKMA survey is a wake-up call for the city’s financial sector to embrace cryptographic agility before it’s too late
Bankers around the world have been nervously watching a countdown to Q-Day, the hypothetical moment when quantum computers become powerful enough to decipher even the most secure encryption. However, few are prepared to face this hi-tech threat. It is good that Hong Kong’s banking sector has received a fresh wake-up call about cybersecurity risks related to the technology. On Monday, the city’s de facto central bank sounded the alarm as it unveiled a new benchmark to track industry readiness.
Concern centres on highly anticipated technology that taps the rules of quantum physics to create machines that solve problems much faster than computers of the past. For global banking, this new massive processing power will be a double-edged sword as current encryption becomes obsolete, leaving data and systems exposed to hackers. The authority said it could take until 2030 before banks earn full marks on the new index, a worrying result since tech giant Google has warned that quantum computers could hack some systems by 2029.
The monetary authority deserves credit for pushing the banking sector to pick up the pace. The city’s fintech sector has a reputation for innovation, resilience and problem-solving. The new index should be seen as a catalyst for rising to the challenges.
The score should also be viewed as a transparent baseline assessment. The survey found 68 per cent of banks have started some preparations. Others must take the initiative and move to catch up.