Key facts
- Hong Kong Monetary Authority (HKMA) launched a quantum preparedness framework and index for banks.
- The sector's Quantum Preparedness Index (QPI) scored 2.3 out of 10, with half of institutions lacking post-quantum planning.
- The HKMA aims for full sector readiness by 2030, aligning with the city's push for tokenized finance.
- Quantum computers pose a threat to current encryption, potentially compromising data and transactions.
- HSBC has already used quantum-safe technology for tokenized gold transactions.
Hong Kong's banking sector is beginning to prepare for the potential security risks posed by quantum computing, with the Hong Kong Monetary Authority (HKMA) leading the charge. The HKMA has introduced a framework and the sector's first Quantum Preparedness Index (QPI), which revealed a low overall readiness score of 2.3 out of 10, with approximately half of surveyed institutions lacking formal post-quantum planning. The authority aims to achieve full sector readiness by 2030, a goal that aligns with the city's increasing adoption of tokenized finance, including green bonds, tokenized deposits, and digital asset settlement. The HKMA emphasized that quantum computers could break current encryption methods, jeopardizing distributed ledger applications and payment networks. To mitigate these risks, banks are urged to begin planning for the migration to quantum-resistant cryptography, a process that can take years. HSBC has already demonstrated the use of quantum-safe technology in moving tokenized gold across distributed ledgers.