European Union financial regulators have issued a warning about potential risks posed by advances in quantum computing, stating that this technology could undermine the cryptographic systems
European Union financial regulators have issued a warning about potential risks posed by advances in quantum computing, stating that this technology could undermine the cryptographic systems securing blockchains and other digital financial infrastructure.
The European Banking Authority, European Insurance and Occupational Pensions Authority, and European Securities and Markets Authority released a joint risk update Wednesday, emphasizing that quantum computing developments may threaten the cryptographic techniques used to protect transactions, communications, and data storage.
Their concerns follow recent findings by Google Quantum AI. In March, researchers from Google estimated that quantum computers capable of breaking the cryptography used by most cryptocurrencies would require about 20 times fewer physical qubits than previously believed. Each qubit serves as the fundamental building block of a quantum computer and determines its processing power.
At present, no quantum computer possesses sufficient capability to execute such attacks. However, regulators caution that the evolution of quantum computing continues to advance rapidly, making proactive risk assessments essential for the security of digital finance.
For cryptocurrency holders, the main risk arises from the possibility that, in the future, quantum computers could extract a private key from an exposed public key, enabling malicious actors to authorize unauthorized transactions.
This scenario would represent a significant threat to the integrity of cryptocurrencies, highlighting the need for developers and platforms to anticipate a post-quantum environment.
Several in the crypto industry have begun to consider defenses against quantum attacks. In February, Bitcoin developer Jameson Lopp and five co-developers put forward a plan to phase out the network’s current digital signatures and restrict the spending of unmigrated funds five years after the proposal’s implementation. So far, this plan remains only a proposal and has not been adopted by the Bitcoin network.
On the Ethereum side, the Ethereum Foundation has set a target to make the protocol resistant to quantum attacks across its execution, consensus, and data storage layers by December 2029. These efforts involve significant adjustments to the network’s fundamental cryptographic elements.
Alongside these protocol-level developments, projects like StarkWare are conducting tests focused on quantum-resistant Bitcoin transactions, deploying solutions on mainnet to evaluate their robustness.
Technical vulnerabilities such as quantum threats have drawn further attention to market dynamics beyond price activity, especially in sectors like meme tokens where rapid value changes are common. In the meme token market, an internet trend can transform into millions of dollars of interest within days. According to data shared by Fomo App, a trade involving “Niu Lai”—which turned an initial $99 investment into approximately $370,000, stands out as a striking example of this activity.
In these highly reactive markets, tracking not only price movements but also investor timing and token selection is crucial. Fomo App integrates token discovery and trading, offering social feeds, investor rankings, and trade notifications to help users monitor investor activity as well as token trends.
The post EU regulators warn quantum computing could threaten blockchain security appeared first on COINTURK NEWS.
