EU Regulators Warn Quantum Tech Threatens Crypto Security

European Union financial supervisors issued a joint warning on Wednesday regarding quantum computing risks. They stated that future machines could undermine the cryptography securing blockchain transactions and databases.

The warning aligns with a recent assessment from Google Quantum AI researchers. They calculated that breaking current crypto standards requires twenty times fewer qubits than previous estimates suggested.

Regulators highlight specific cryptographic vulnerabilities

The European Banking Authority and two other EU bodies published a joint risk update. They identified quantum computing as a threat to systems securing communications, transactions, and data storage.

Cointelegraph reports this follows a detailed technical analysis by Google Quantum AI. The researchers noted that a quantum computer could derive private keys from public ones. This capability would allow attackers to authorize unauthorized transactions on the network.

Bitcoin developers propose signature migration

Bitcoin developer Jameson Lopp and five co-developers proposed a network upgrade in February. The draft plan seeks to phase out current signature standards to protect against quantum attacks.

The proposal includes restricting spending of unmigrated funds five years after activation. However, the Bitcoin community has not yet adopted this specific migration framework.

Ethereum targets full quantum resistance

The Ethereum Foundation has set a target date for its security upgrade. It aims to make the entire execution and consensus layer resistant to quantum attacks by December 2029.

No computer capable of executing such an attack exists today. Nevertheless, the EU supervisors urge immediate preparation to safeguard the financial infrastructure against emerging technological threats.