A secure communication channel aimed at safeguarding financial data against potential threats from quantum computers has been successfully established by the BIS Innovation Hub Eurosystem Centre, in collaboration with Banque de France and Deutsche Bundesbank.
The Bank for International Settlements considers quantum computing to be one of the most significant cybersecurity threats to the financial system, as it poses the risk of exposing all transactions and stored financial data. This potential risk is often referred to as “Q Day.”
To facilitate a transition to quantum-resistant encryption, Project Leap from the BIS Innovation Hub Eurosystem is exploring ways to update and replace the cryptographic security algorithms that are essential to the financial system. The project successfully demonstrated the transmission of test payment messages through a quantum-resistant Virtual Private Network (VPN) tunnel between servers in Paris and Frankfurt, illustrating how critical financial data can be secured.
The BIS states that this experiment serves as a blueprint for the financial system to establish a comprehensive chain of trust for central bank applications in a post-quantum environment.
“As we cannot predict exactly when quantum computers will be able to break today’s encryption, it is imperative for central banks to begin their preparations,” said Raphael Auer, head of the BIS Innovation Hub Eurosystem Centre. “Project Leap outlines a strategy for achieving this.”