The Bank for International Settlements (BIS), together with Swift and several European central banks, has successfully tested post-quantum cryptography in real-world payment systems to prepare for the security challenges posed by quantum computing.
The move forms part of an initiative called Project Leap, focused on identifying the main challenges that the financial system will face in a post-quantum world.
Launched in July this year, the project aims to future-proof the financial system against quantum computing risks, moving from proof-of-concept experiments to real-world integration.
This phase of testing, called Project Leap Phase 2, addressed the risk that quantum computers could breach widely used cryptographic algorithms, undermining the security of financial transactions.
The group of financial institutions conducted a series of experiments to replace traditional digital signatures with post-quantum cryptography when sending liquidity transfers in an active European payment system.
It focused on experimenting with and implementing quantum-resistant cryptography in payment systems to ensure that financial infrastructures remain secure against these threats.
“Most payment systems rely on public key cryptography and require long-term data confidentiality, making them vulnerable to the quantum computing threat,” explained BIS in a statement.
The BIS stated that the tests, which covered functionality, performance and interoperability, were successfully completed, demonstrating the feasibility of migrating payment systems to post-quantum cryptography.
The tests also revealed significant differences in performance between traditional and post-quantum algorithms, highlighting the need for further testing and preparation before proceeding with the transition of the financial system, it added.
These new experiments follow Phase 1 of Project Leap, the initial phase of the initiative, which successfully established a secure communication channel between central banks using post-quantum algorithms.
“The two successful technical experiments of Project Leap Phases 1 and 2 have laid important groundwork for the quantum-safe journey of payment systems, underscoring the commitment of central banks and private partners to proactively safeguarding the integrity and resilience of existing and future financial infrastructures,” said BIS.
