G7 Central Bank Quantum Technology Working Group releases first report: warns of long-term risks in financial encryption system BlockBeats News: On June 15th, the first public report released by the G7 Central Bank Quantum Technology Working Group (QTWG) pointed out that quantum computing technology may have a profound impact on the global financial system, especially in the areas of data encryption and network security, bringing structural challenges. This working group was established in 2025 and is jointly led by the Bank of France and the Bank of Canada. Its members include the Federal Reserve, European Central Bank, Bank of England, Bank of Japan, as well as major central bank institutions such as Germany and Italy. The report points out that although there is currently no quantum computer with "password cracking capability", the industry generally believes that its likelihood of appearing in the next decade is increasing, which will pose potential risks to existing financial infrastructure that relies on traditional encryption algorithms. One of the core risks is known as the "collect first, decrypt later" strategy, which involves long-term storage of current encrypted financial data and cracking it when future quantum computing capabilities mature, which may pose a threat to the long-term data security of the financial system. The report suggests that financial institutions in various countries should conduct a preliminary review of the list of dependencies on encryption systems, gradually evaluate the feasibility of migrating to post quantum cryptography, and strengthen cross institutional coordination to reduce systemic risk exposure. In terms of opportunities, quantum computing is expected to enhance the computing capabilities of financial institutions in areas such as risk modeling, portfolio optimization, macroeconomic forecasting, and stress testing. However, its practical application still depends on technological maturity and scale progress. Analysis suggests that this report marks the systematic integration of quantum technology into the financial stability assessment framework by G7 central banks, which may drive long-term upgrades in global financial infrastructure at the level of encryption and computing architecture in the future. [Original link]