The G7 Cyber Expert Group has warned the financial sector to prepare for risks posed by quantum computing. The group, chaired by the U.S. Department of Treasury and the Bank of England, advises G7 finance ministers and central bank governors on cyber issues. Quantum computers can solve complex problems that conventional computers cannot.
While these technologies promise benefits, they also pose significant cybersecurity risks. Traditional cryptographic algorithms that secure financial information and government secrets could be easily cracked by quantum computers. The group advised financial entities to take preemptive measures.
Quantum computing risks for finance
Suggested actions include creating an inventory of current cryptography use and planning the replacement of vulnerable technologies with quantum-resistant ones. The G7 group pointed to government-issued guides that can help companies prepare.
“The G7 CEG believes that planning for the quantum transition is critical to economic security and prosperity. They strongly encourage financial institutions to provide the necessary funding and resources to support these efforts,” said Todd Conklin, Deputy Assistant Treasury Secretary for Cybersecurity and Critical Infrastructure Protection. The G7 Cyber Experts Group sets cyber policy for Canada, France, Germany, Italy, Japan, the U.K., and the U.S. Several financial authorities within these countries have issued similar warnings and recommendations regarding quantum computing in recent years.
For instance, the U.S. Federal Reserve acknowledged last year that there are significant challenges to the widespread implementation of quantum-resistant cryptography algorithms.
