Quantum Computing Threats to Capital Markets Highlighted by OSC

• •The OSC warns of cybersecurity risks from quantum computing, particularly for encrypted data.
• •Cybercriminals may exploit current encryption vulnerabilities with future quantum capabilities.
• •Firms are encouraged to assess quantum technology's risks and opportunities proactively.

The Ontario Securities Commission (OSC) published an article on quantum computing's implications for capital markets, emphasizing the risks of the 'harvest now, decrypt later' strategy employed by cybercriminals. This strategy involves collecting encrypted data today for future decryption using advanced quantum computers. The OSC's report outlines the potential vulnerabilities of current cryptographic systems as quantum technology matures, posing short-term risks for financial institutions. Although quantum computing has not yet provided a production-capable advantage, its rapid advancements necessitate that firms begin assessing both opportunities and risks. The OSC aims to guide market participants in preparing for these developments to maintain confidence in Ontario's capital markets. The report was developed with input from softwareQ Inc., evolutionQ Inc., and the Institute for Quantum Computing at the University of Waterloo.