G7 Central Bank Quantum Technology Working Group Releases First Report: Warns of Long-Term Risks to the Financial Cryptographic System

BlockBeats News, June 15th, the first public report released by the G7 Central Bank Quantum Technology Working Group (QTWG) pointed out that quantum computing technology may have a profound impact on the global financial system, especially bringing structural challenges in data encryption and cybersecurity.

The working group was established in 2025, co-led by the Bank of France and the Bank of Canada, with members including the Federal Reserve, the European Central Bank, the Bank of England, the Bank of Japan, as well as major central banks in Germany, Italy, and others.

The report stated that although a quantum computer with "cryptographic capabilities" has not yet appeared, the industry generally believes that the possibility of its emergence in the next decade is increasing, which will pose a potential risk to the existing financial infrastructure relying on traditional encryption algorithms.

One core risk is called the "harvest now, decrypt later" strategy, which involves long-term storage of current encrypted financial data for decryption when future quantum computing capabilities mature, potentially threatening the long-term security of financial system data.

The report suggested that financial institutions in each country should proactively conduct an inventory of their encryption system dependencies, gradually assess the feasibility of migrating to post-quantum cryptography, and strengthen cross-institution coordination to reduce systemic risk exposure.

In terms of opportunities, quantum computing is expected to enhance financial institutions' computing capabilities in risk modeling, portfolio optimization, macroeconomic forecasting, and stress testing, but its actual application still depends on technological maturity and scale-up progress.

Analysis believes that this report marks the G7 central banks systematically incorporating quantum technology into the financial stability assessment framework, which may drive global financial infrastructure to undergo long-term upgrades in encryption and computing architecture.