EU watchdogs warn quantum computers could pick crypto’s locks
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
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Summary
European Union financial supervisors, including the European Banking Authority, European Insurance and Occupational Pensions Authority, and European Securities and Markets Authority, warned that advances in quantum computing could threaten the cryptography that secures blockchain transactions. This warning aligns with findings from Google Quantum AI, which reported that breaking cryptocurrency cryptography may require significantly fewer qubits than previously thought, though no such quantum computer currently exists. Concerns center on quantum computers potentially deriving private keys from public keys to authorize unauthorized transactions.
Why it matters
According to the sources, the development matters because quantum computing advances could undermine the security guarantees of blockchain systems, potentially affecting transaction integrity and data security. This poses risks to cryptocurrency holders and the broader financial ecosystem relying on cryptographic security. The source emphasizes the need for blockchain networks to develop resistance to quantum threats.
Key context
The joint EU warning follows Google's March assessment indicating a lower qubit requirement for breaking cryptography used in many cryptocurrencies. The article notes specific responses in the crypto community, such as a February proposal from Bitcoin developer Jameson Lopp and others to phase out Bitcoin’s current signatures to mitigate quantum risks, although this proposal has not been adopted. Ethereum Foundation plans to enhance Ethereum’s quantum resistance by the end of 2029.
Key numbers and entities
European Banking Authority, European Insurance and Occupational Pensions Authority, European Securities and Markets Authority, Google Quantum AI, Jameson Lopp, Ethereum Foundation. Google researchers estimated breaking crypto cryptography requires about 20 times fewer physical qubits than earlier estimates. Ethereum aims for quantum resistance by December 2029.
What remains unclear
The precise timeline for when quantum computers capable of breaking current cryptographic protections might be realized is not established. The specific technical approaches and adoption status of proposed quantum-resistant measures, beyond Ethereum’s stated goals and the unadopted Bitcoin proposal, remain vague in the source.