The Quantum Economy: The Next Big Thing In Finance
Quantum security starts now, not in some distant future.
I pity bankers who, in the midst of a painful AI transformation, are being warned that they must also prepare for the “quantum economy.” They can never get ahead of the technology!
Quantum is around the corner for them with advances like Google’s new Willow chip, which was announced this past December, making it an ever-nearer reality. Just how fast or disruptive is it?
Google claims Willow will take five minutes to solve a problem that would currently take the world's fastest supercomputers ten septillion – or 10,000,000,000,000,000,000,000,000 years – to complete!
This is why all eyes are on quantum, as it’s a game changer for quantitative finance, cryptography, and fraud detection. All bank processes that require intensive computational power today will be disrupted.
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Some readers may think that quantum is still for the distant future, and they can wait it out. If so, consider this scenario for the ECB’s digital euro design team.
If the ECB wants to get over five years out of the initial design, it has no choice but to use quantum-proof cryptographic coding to ensure security, no ifs or buts about it. Think about a quantum attack on a CBDC or even the Bitcoin network!
That’s why quantum is here already, like it or not.
👉The Quantum Advantage
Strategic Advantages:
Technological leadership: Early adopters can establish themselves as leaders, setting standards and influencing the development of the ecosystem.
Competitive edge: Access to advanced systems early on provides capabilities to solve complex problems faster and more efficiently – a significant competitive advantage. Economic impacts:
Quantum computing has the potential to revolutionize industries such as finance, pharmaceuticals and healthcare to drive economic growth and job creation.
Potential Pitfalls
High R&D costs: Significant investment in research and development is required, with no guaranteed returns.
Unpredictability: The maturation of quantum computing technology is uncertain, and breakthroughs may take longer than anticipated.
Skilled workforce: Building and retaining a workforce capable of developing and utilizing quantum computing technology is a major challenge.
Export controls: These could restrict the transfer of quantum algorithms, software and hardware that may be deemed a national security risk for the country.
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