Hong Kong’s central bank puts a number on lenders' quantum preparedness. It's very low.

The Hong Kong Monetary Authority (HKMA) has revealed that the banking sector in Hong Kong is significantly underprepared for the challenges posed by quantum computing. In a whitepaper published on July 27, 2026, the HKMA introduced its new Quantum Preparedness Index, scoring the local banking industry at a low 2.3 out of 10. This score indicates that most banks are only beginning to recognize the risks related to quantum technology, with many still in the early awareness phase and very few advancing to formal planning or pilot projects related to post-quantum cryptography.

The study, based on a survey conducted earlier in 2026, found that about 68% of banks showed some awareness or had started initial planning stages, but roughly half had yet to create formal plans for transitioning to post-quantum cryptography. Although about half of the banks had discussed quantum risks at the board level, only around one-third were actively exploring or testing quantum technologies. The HKMA outlined four stages tracked by its index—awareness, planning, pilot programs, and practical preparedness—and noted that most banks remain at the foundational stage rather than having built any substantial quantum resilience.

The urgency of improving quantum preparedness stems from the potential threat quantum computing poses to current encryption standards that underlie banking and financial security. The so-called “harvest now, decrypt later” attack highlighted by the Bank for International Settlements' Project Leap involves criminals collecting encrypted data today with the intent to decrypt it once powerful quantum computers become available. While large-scale quantum machines capable of breaking such encryption do not yet exist, experts estimate the risk could materialize as soon as 2029, affecting both banks and blockchain networks like Bitcoin and Ethereum.

To address this looming threat, the HKMA has set an ambitious target of achieving a perfect score of 10 on its Quantum Preparedness Index by 2030. The regulator plans to support the banking sector through initiatives such as developing a post-quantum cryptography toolkit in collaboration with the Hong Kong University of Science and Technology’s business school and offering workshops to build relevant skills and improve cryptographic agility. These efforts align with global regulatory movements, including recent U.S. executive orders aimed at accelerating quantum computing development and federal migration to post-quantum cryptography by 2030-31.