30th July 2026
By Anjali Kochhar
Hong Kong’s banking sector is significantly underprepared for the risks posed by quantum computing, according to a new assessment released by the Hong Kong Monetary Authority (HKMA), which gave lenders a Quantum Preparedness Index (QPI) score of just 2.3 out of 10. The regulator said the findings highlight the urgent need for banks to strengthen their cyber resilience before quantum computers become capable of breaking today’s encryption standards.
HKMA’s Quantum Preparedness Index Reveals Major Banking Gaps
The QPI, introduced as part of the HKMA’s fintech strategy, is the regulator’s first formal benchmark for measuring how well banks are preparing for the transition to post-quantum cryptography. The index evaluates institutions across four areas: awareness, planning, pilot programmes and practical implementation. The overall score indicates that most banks remain in the early stages of preparing for quantum-related cybersecurity threats.
According to the regulator’s survey conducted earlier this year, around 68% of banks have at least begun discussing quantum risks or are planning initiatives to address them. However, roughly half of the institutions surveyed still do not have a formal strategy for migrating to quantum-resistant encryption, while nearly one-third have yet to begin the transition at all.
Why Quantum Computing Threatens Current Banking Encryption
Quantum computers, once sufficiently advanced, are expected to be capable of breaking widely used cryptographic systems such as RSA and elliptic curve cryptography, which currently secure banking transactions, digital identities and blockchain networks. Although such machines do not yet exist at the required scale, regulators and technology companies increasingly believe financial institutions should begin preparing years in advance because replacing encryption across complex banking infrastructure could take considerable time.
To accelerate the transition, the HKMA plans to introduce a post-quantum cryptography toolkit in collaboration with the Hong Kong University of Science and Technology, alongside technical workshops, industry guidance and training programmes. The regulator has set a target of helping the banking industry achieve full quantum preparedness by 2030.
The warning comes as Hong Kong continues expanding its digital asset and tokenisation ecosystem. As more financial products and payment systems move onto blockchain-based infrastructure, regulators view quantum-resistant security as becoming increasingly important to safeguard digital finance. The HKMA said banks should begin identifying vulnerable cryptographic systems, develop migration plans and improve their ability to update encryption technologies as quantum computing continues to advance.
