Hong Kong banks prepare for quantum security risks

• Hong Kong banks are preparing for future cyber threats from quantum computing.
• The city's banking regulator wants lenders to strengthen security as tokenised finance grows.
• The move supports Hong Kong's push to become a digital asset hub.

Hong Kong banks are preparing for the day quantum computers could break today's encryption and threaten digital assets.

The Hong Kong Monetary Authority (HKMA) has introduced a Quantum Preparedness Index to help banks measure and improve their cyber defences.

The regulator said banks should start adopting quantum-resistant encryption to protect financial systems and tokenised assets before the technology becomes a real threat.

Hong Kong has made tokenisation a key part of its digital finance strategy through projects involving tokenised bonds, stablecoins and blockchain-based settlement.

The latest initiative shows Hong Kong is preparing its financial system for both the growth of digital assets and future advances in computing.