France and Singapore's Central Banks Test Post-Quantum Cryptography, Eye Payments Sector Implementation

The Monetary Authority of Singapore (MAS) and the Banque de France (BdF) revealed that their initiative focused on quantum-secure email encryption.

France and Singapore’s central banks have completed a joint experiment designed to test post-quantum cryptography techniques, setting the stage for their implementation in the payments sector.

The Monetary Authority of Singapore (MAS) and the Banque de France (BdF) announced on Wednesday that their initiative focused on quantum-secure email encryption. They aimed to make email communications resistant to quantum computing while ensuring compatibility with current Internet standards.

The pilot was limited to Microsoft (NASDAQ: MSFT) Outlook as the email client by the two banks, who exchanged emails that were digitally signed and encrypted using post-quantum computing (PQC) algorithms. They chose emails as a starting point because “they may contain confidential information, making them a primary target for cyberattacks.”

The project, however, was a test run for future work on PQC algorithms for the financial sector as the industry faces the looming threat of quantum computing.

“There is potential to integrate this technology into payment networks. By integrating PQC algorithms into payment networks, financial institutions can future-proof their security measures against the looming threat of quantum computing, ensuring the long-term integrity and confidentiality of sensitive financial data,” the two banks stated.

It is one of several projects aimed at ensuring the financial services industry is not left vulnerable to quantum computing attacks. At present, quantum computers are still in the early stages of development, and experts believe it will be several years before they can pose a real danger on a global scale.

However, the field has advanced significantly in recent years, and the predictions of a quantum apocalypse are drawing worryingly closer. Some believe that quantum computers could pose a threat within a decade, while others, such as Chinese researchers from Shanghai University, claim to have already broken encryption with quantum computing.

“While the exact timeline for developing quantum computers with these capabilities is uncertain, there is a real possibility that such capabilities could emerge within a decade,” the G7 Cyber Expert Group noted in an October report.

Most companies are already making efforts to be quantum-ready; for example, Apple’s (NASDAQ: AAPL) encryption for iOS now protects against quantum computing attacks. Governments are also urging businesses to prepare for the inevitable; a White House executive order stated that the quantum threat is “a pressing matter of national security” and revealed that the US is already taking action on the issue.

The financial industry is at the greatest risk, making initiatives like the BdF-MAS joint project crucial.

“Financial institutions that prepare early for the quantum era will not only mitigate future risks but also position themselves to retain public trust in digital financial services,” said Jacqueline Loh, deputy managing director of MAS.

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