The Hong Kong Monetary Authority (HKMA) has released a whitepaper examining the banking sector’s preparedness for quantum computing, introducing its first-ever Quantum Preparedness Index to measure industry readiness.
Hong Kong’s central bank is warning that local financial institutions remain far from ready for the potential challenges posed by quantum technology.
The HKMA published the report on Monday, revealing that the banking sector scored just 2.3 out of 10 on its new Quantum Preparedness Index. The result highlights that many banks are still at the early stages of identifying quantum-related risks.
The findings come as cybersecurity experts increasingly caution that the quantum era could create significant challenges for existing encryption systems sooner than many organizations expect.
Unveiled during the eighth FiNETech conference, the whitepaper was based on a survey conducted earlier this year and showed that while awareness of quantum threats is growing, actual preparation efforts remain limited.
Around 68% of banks surveyed had either started developing awareness, creating plans, or launching pilot initiatives related to quantum readiness. However, many institutions have yet to take meaningful action. Nearly half of respondents have not created a formal strategy for transitioning to post-quantum cryptography. Additionally, while quantum risks had been discussed by boards at roughly half of the banks, only one-third had moved toward testing or experimenting with quantum-related solutions.
The findings suggest that Hong Kong’s banking sector is still focused on understanding the risks rather than building operational quantum capabilities. The HKMA’s index evaluates progress across four stages: awareness, planning, pilot testing, and practical implementation.
Quantum preparedness is becoming increasingly critical because future quantum computers could potentially break the encryption technologies that protect modern financial systems. Banks face particular exposure from “harvest now, decrypt later” attacks, where attackers collect encrypted information today and attempt to decode it once sufficiently powerful quantum machines become available.
The threat extends beyond traditional finance. Blockchain networks such as Bitcoin and Ethereum also depend on cryptographic security, meaning future quantum advances could create long-term risks for digital asset ecosystems as well.
While quantum computers capable of defeating current security systems do not yet exist, some researchers believe such capabilities could emerge within the next several years, with estimates placing the possibility as early as 2029.
The HKMA has set a target of achieving a perfect score of 10 on its Quantum Preparedness Index by 2030. To help banks reach that goal, the regulator is developing a post-quantum cryptography toolkit with the Hong Kong University of Science and Technology’s business school and organizing educational workshops focused on improving technical expertise, strengthening cryptographic adaptability, and exploring quantum opportunities safely.
Hong Kong’s efforts are part of a wider global push toward quantum security. In the United States, President Donald Trump recently signed two executive orders focused on advancing quantum technology and improving cybersecurity resilience. One order aims to accelerate U.S. quantum computing development toward advanced research capabilities by 2028, while another directs federal agencies to transition to post-quantum cryptography between 2030 and 2031.
