The Hong Kong Monetary Authority (HKMA) has published a new whitepaper evaluating how prepared the city’s banking sector is for the quantum computing era, along with the release of its first Quantum Preparedness Index.
Hong Kong’s central bank is raising concerns about the financial industry’s limited progress in preparing for the potential impact of quantum technology.
The HKMA released the report on Monday, assessing the banking sector’s readiness for quantum-related threats and opportunities. Its newly introduced Quantum Preparedness Index gave the industry a score of only 2.3 out of 10.
The low rating indicates that most banks are still in the early stages of understanding quantum risks, even as cybersecurity specialists warn that the transition to quantum-enabled threats could happen sooner than expected.
Presented at the eighth FiNETech conference, the report was based on a survey conducted earlier this year. It showed that while awareness of quantum risks is improving, practical preparation across the banking sector remains limited.
Approximately 68% of surveyed banks had either developed some awareness of quantum challenges or moved into planning and pilot phases. However, many institutions have yet to take concrete steps. Nearly half of respondents had not established a formal roadmap for adopting post-quantum cryptography. Although around half of banks had discussed quantum risks at the board level, only about one-third had begun testing or exploring quantum-related technologies.
In other words, Hong Kong’s banking sector is still building basic awareness rather than developing full quantum-readiness capabilities. The HKMA’s index measures progress across four stages: awareness, planning, pilot programs, and practical implementation.
Preparing for quantum risks has become increasingly important because advanced quantum computers could eventually compromise the cryptographic systems that protect today’s financial infrastructure. Banks are particularly vulnerable to “harvest now, decrypt later” attacks, where attackers collect encrypted data today and attempt to unlock it in the future using more powerful quantum systems.
The same concern applies to blockchain networks such as Bitcoin and Ethereum, which rely on cryptographic protections that could face challenges from sufficiently advanced quantum computers.
Although quantum machines capable of breaking current financial security systems do not exist yet, some experts estimate that such threats could become realistic as early as 2029.
The HKMA aims to raise its Quantum Preparedness Index score to 10 by 2030. To achieve this goal, the regulator is developing practical support tools, including a post-quantum cryptography toolkit in collaboration with the Hong Kong University of Science and Technology’s business school. It is also planning workshops to help banks improve technical skills, strengthen cryptographic flexibility, and explore quantum technology responsibly.
Other governments are also preparing for the quantum transition. U.S. President Donald Trump recently signed two executive orders focused on quantum development and security. One seeks to accelerate U.S. quantum computing research with the goal of achieving advanced scientific capabilities by 2028, while the other calls for federal agencies to transition toward post-quantum cryptography between 2030 and 2031.
