Preparing finance for the quantum future

The rise of post-quantum cryptography

To prepare for this shift, the banking sector is turning its attention to post-quantum cryptography (PQC), new methods of encryption designed to resist even quantum attacks. These algorithms are being finalised by international experts and are based on mathematical puzzles that remain secure even for quantum machines.

For banks and financial institutions, transitioning to PQC is a major but necessary step. It requires:

• Identifying where current cryptography is used;
• Updating systems to allow a smooth switch to new algorithms;
• Coordinating with regulators, payment networks and technology partners.

This transformation will take years, which is why preparation must begin now. Data stolen today could be decrypted in the future once quantum computers become powerful enough — a risk often referred to as “harvest now, decrypt later.”

Growing awareness at European level

Public-sector agencies are already raising the alarm. Europol, through its Quantum Safe Financial Forum (QSFF), has urged financial institutions and policymakers to prioritise the transition to quantum-safe cryptography. The Forum warned that the financial sector faces a substantial threat from quantum-powered attacks, and called for industry-wide coordination and improved cryptographic management practices — emphasising that acting now will prevent exploitation of weaknesses later.

Luxembourg’s national quantum strategy

Luxembourg is also taking a proactive stance. In 2025, the government released a national quantum strategy that places the country among Europe’s early movers in quantum innovation.

The strategy focuses on strengthening national capabilities in quantum communication, computing and sensing, while supporting the creation of a secure and trusted digital environment. It highlights the need for collaboration between the public sector, research institutions and the financial industry to ensure that Luxembourg’s digital infrastructure, including its critical financial data hubs, remains resilient and quantum-ready.

This initiative, coordinated by the government, reflects Luxembourg’s ambition to play a leading role in Europe’s emerging quantum ecosystem.

Luxembourg’s financial sector response

In Luxembourg, the ABBL is addressing this crucial topic through its Working Group on Trust and Cybersecurity. The group brings together experts from across the financial community to assess quantum risks, raise awareness and support the sector’s preparedness for the quantum transition.

Building resilience for the quantum age

Adopting PQC is not only about preventing future attacks. It also offers an opportunity to modernise cybersecurity, strengthen resilience and build public trust in digital finance.

By acting early, financial institutions can demonstrate leadership and ensure that the global financial system remains safe and reliable, even in the quantum age.