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

June 15: The first public report from the G7 Central Bank Quantum Technology Working Group (QTWG) warns quantum computing could have a profound impact on the global financial system, bringing notable structural challenges to data encryption and cybersecurity. Launched in 2025 and co-led by the Bank of France and Bank of Canada, the working group includes members like the U.S. Federal Reserve, European Central Bank (ECB), Bank of England, Bank of Japan, plus major central banks from Germany, Italy and other nations. The report notes while a quantum computer with “cryptographic cracking capabilities” hasn’t been built yet, industry experts increasingly agree such a machine could emerge within the next decade—posing a potential threat to today’s financial infrastructure, which relies on traditional encryption algorithms. A core risk highlighted is the so-called “harvest now, decrypt later” strategy: actors are storing current encrypted financial data long-term, planning to decode it once quantum computing power matures, putting long-term financial data security at risk. To mitigate this, the report recommends financial institutions proactively conduct an inventory of their encryption system dependencies, gradually assess the feasibility of migrating to post-quantum cryptography, and strengthen cross-institutional coordination to reduce systemic risk exposure. On the upside, quantum computing is expected to boost financial firms’ computing power for use cases like risk modeling, portfolio optimization, macroeconomic forecasting and stress testing—though real-world application will depend on technological maturity and scaling progress. Analysts say the report marks G7 central banks’ formal integration of quantum technology into their financial stability assessment frameworks, which could drive long-overdue upgrades to encryption and computing architecture across global financial infrastructure.