Opening Remarks at FiNETech8 on “Navigating Quantum Duality”
Speeches
27 Jul 2026
Opening Remarks at FiNETech8 on “Navigating Quantum Duality”
Carmen Chu, Executive Director (Banking Supervision), Hong Kong Monetary Authority
- Good morning, everyone. On behalf of the HKMA, I’m pleased to welcome you all to FiNETech8, the eighth edition of our flagship series on fintech promotion.
- Over the past two years, we’ve explored how new technologies are reshaping financial services. Today, we turn to an evolving and potentially transformative technology: quantum computing.
- With all banks’ active participation, we recently completed the first Quantum Preparedness Survey. The results show that around half of our banks have already covered quantum computing at board discussions.
- The quantum conversation is clearly shifting from possibility to preparedness. For banks, the task is twofold: risk management of quantum, and risk management by quantum.
- Today, we are pleased to publish our first whitepaper on quantum computing and Post-Quantum Cryptography, or PQC.
- The whitepaper is a product of close engagement with industry stakeholders and academia. And it’s intended to help the banking sector to better understand the implications of quantum computing, and to begin planning in a structured and forward-looking manner.
- Put simply, quantum computing is a different way of processing information and solving complex problems, and potentially more efficient than classical computing. Over time, this could open up new possibilities in areas like financial modelling, risk analysis and fraud detection.
- But we must be equally clear about the risks. The same technology poses potential challenge to the cryptographic foundations. In theory, it could undermine some of the current encryption methods that are widely adopted to protect data and to support authentication.
- While current encryption methods still work, quantum computing is breaking through rapidly. The risk is emerging, and it is real.
- So where do we stand today? The HKMA’s Quantum Preparedness Index Survey provides an early snapshot, offering a structured and consistent way to assess the sector’s current level of preparedness, and help banks identify gaps and priorities for further action.
- The survey results show that the banking sector has begun engaging with the quantum transition, with about one-third of banks already started exploring or piloting applications; however, overall preparedness for PQC remains at an early stage.
- While about 70% of banks demonstrate awareness or have progressed to more advanced stages, around 30% have not yet embarked upon their transition journey. This suggests that many banks are still building the foundational capabilities for transition to PQC.
- It is therefore timely for the HKMA to introduce the Quantum Preparedness Index as part of the whitepaper. Today, the sector’s Quantum Preparedness Index score stands at 2.3 out of 10. A “10” represents the level of readiness that we believe Hong Kong’s banking sector should achieve by 2030, to adequately address the evolving quantum-related risks.
- This is an ambitious goal, but it is a necessary one. For those banks that already have transition plans, the implementation timeframe is expected to be 5.6 years on average. That alone explains the urgency.
- Then, the next question is “how”.
- A key recommendation in the whitepaper is to establish cryptographic agility — the ability to upgrade crypto algorithms in a timely, controlled and efficient manner, without major disruption to existing systems, operations or services.
- This is important because the transition to PQC is not a one-off IT project. Standards will continue to evolve, and banks must be able to adapt accordingly.
- To support the industry, the HKMA is collaborating with The Hong Kong University of Science and Technology (HKUST) to develop a PQC toolkit. This toolkit will help banks to identify priorities for transition planning, and offer reference architecture to achieve greater cryptographic agility.
- We will also organise workshops to help banks to build capability, strengthen preparedness for PQC, and explore the potential future use of quantum technologies in a responsible manner. Our goal is simple: to raise awareness, and to translate awareness into action.
- Before we start the session, I would like to extend my sincere gratitude to our co-hosts, Cyberport (Hong Kong Cyberport Management Company Limited), the FinTech Association of Hong Kong and the School of Business and Management of the HKUST; and to our supporting organisations, the SFC (Securities and Futures Commission), the IA (Insurance Authority), the MPFA (Mandatory Provident Fund Schemes Authority), the Qianhai Authority, HKAB (The Hong Kong Association of Banks) and Science Park (Hong Kong Science and Technology Parks Corporation).
- I would also like to thank our distinguished speakers for sharing valuable insights with us today.
- The transition to quantum-resistant settings will not happen overnight. It requires careful preparation, because cryptography is deeply integrated into banks’ core systems. The Whitepaper is guiding our way forward towards a full mark of 10 for the Quantum Preparedness Index.
- And our preparation accelerates now.
- Thank you.
