Singapore, France make foray into Quantum-Proof Payment Security The future of Quantum-Proof Payment Networks
Both the Monetary Authority of Singapore and Banque de France do not wait until quantum computing becomes a possible cybersecurity menace but explores post-quantum computing technology instead. Considering the menace of quantum computing to existent ways of encryption, both have just concluded a pilot project on PQC. The chief aim of this is to make digital communication secure through encrypted email using Microsoft Outlook and to build a precedent for PQC integration across the world’s financial ecosystem.
Experiment Outcomes and Need for New Standards
The MAS and BDF’s PQC experiment used a dedicated plugin in sending digitally signed and encrypted emails. The said plugin followed U.S. National Institute of Standards and Technology standards but has uncovered a number of critical issues needing resolution. For instance, the PQC decryption keys must be bigger in size so that they can offer better protection but may serve as potential bottleneck on infrastructure. The experiment pinpoints the need for hybridized PQC standards that would work with existing cryptographic algorithms to provide compatibility, confidentiality, and integrity across payment networks.
As it was stated in the MAS’ technical report, there is a growing threat because of the “harvest now, decrypt later” approach, where malicious actors are intercepting and storing encrypted data until quantum computing becomes advanced enough to decrypt it. Meeting this challenge will require strong international standards capable of embedding PQC across a broad range of encryption environments.
International Cooperation is the Way Forward
Quantum computing, recently emergent, therefore presents risks to the financial sector unprecedented in scale and complexity, as deals in encrypted transactions of sensitive data have always been exchanged. While PQC is apparently showing tremendous promise, wide application in high-frequency financial transactions across frontiers will demand close cooperation among countries and international organizations. The results of this experiment are a welcome addition for the continued research and development in PQC with a view to improving resilience in global communications, says Denis Beau, first deputy governor of BDF.
This pilot project forms a part of the broad-based international drive toward quantum-resistant security. MAS and BDF are also involved in Project Leap, an initiative by the Bank for International Settlements to explore quantum security solutions for payment systems. Singapore incentivizes PQC development through cofunding opportunities, and the two nations continue to collaborate on central bank digital currency research. The experiment put on by the Monetary Authority of Singapore and BDF marks an important milestone in the protection of financial systems across the world against this emerging quantum threat.
