Hong Kong Monetary Authority: Quantum computing may pose a threat to modern encryption methods and will drive preparation work for post-quantum cryptography.

On November 3rd, the Hong Kong Monetary Authority (HKMA) announced the next stage of the financial technology development blueprint - "Fintech 2030". HKMA stated that it will promote the preparation work for Post-Quantum Cryptography (PQC). As an emerging technology, quantum computing is still in the early stages of development, but its potential impact on current data protection and online verification encryption methods has been widely recognized. Leung Ka-kie, Assistant Chief Executive Officer (Banking Supervision) of HKMA, stated that quantum computing may pose a threat to modern encryption methods, including in identity authentication and privacy data. Therefore, HKMA will prepare in advance and is in discussions with banks and technology companies regarding the transition process of encryption methods, and will communicate closely with the industry. Considering the profound impact of this technology on the financial industry, which involves sensitive data and depends on secure encryption technology, HKMA will assist the industry in understanding the related risks and formulating early response strategies to transition to Post-Quantum Cryptography. HKMA Deputy Chief Executive Eddie Yue stated at the Fintech Development Blueprint press conference that in the area of cross-border payment channels, they will continue to cooperate closely with the People's Bank of China to optimize services, including exploring ways to expand the scope of entities handling personal remittances and expanding the application scenarios of remittances related to the livelihoods of residents in both places to facilitate real-time cross-border payments. Regarding the digital issuance of bonds, Eddie Yue commented that the traditional payment process transitioning to digital cannot be accomplished in one step, and they hope that it will become automated in the future. The third batch of bond issuances will involve more digitization.