Full Breakdown
Hong Kong Launches Quantum Preparedness Index for Banking Sector
7/28/2026, 11:53:08 AM
Core Event: HKMA Unveils the First Quantum Preparedness Index
On July 27, the Hong Kong Monetary Authority (HKMA) released a whitepaper on quantum preparedness and introduced the sector’s inaugural Quantum Preparedness Index (QPI). The index, scored out of ten, gave Hong Kong’s banking industry an initial rating of 2.3, indicating early-stage readiness for quantum-related cybersecurity challenges. The HKMA set a target of a score of 10 by 2030 to signify full sectoral readiness.
Background & Context: Quantum Threats Amid a Tokenisation Push
Quantum computers could eventually break public-key encryption methods such as RSA and elliptic-curve cryptography. The HKMA’s whitepaper warns that tokenised deposits and digital-asset settlement, which rely on these primitives, face disruption if quantum attacks succeed. Government data show banks in Hong Kong held more than HK$14 billion in digital assets under custody at the end of 2025, a rise of roughly 180 % year-over-year, while tokenised deposits reached HK$29 billion.
Data & Statistics: Survey Findings Across Four Dimensions
The HKMA’s early-2026 survey evaluated banks on Awareness, Planning, Piloting and Practical Preparedness. Key results:
- 68 % of respondents demonstrated awareness or were progressing to planning or piloting.
- 32 % had not yet begun any quantum-related work.
- About 50 % reported no formal post-quantum cryptography (PQC) roadmap.
- Roughly 33 % indicated they had started exploring or piloting quantum-related initiatives.
One institution completed a proof-of-concept applying PQC to distributed-ledger connectivity, and HSBC reported using quantum-safe technology in 2024 to move tokenised gold across ledgers.
Official Statements & Responses
The HKMA described the QPI as a “forward-looking benchmark” to guide banks from awareness to operational readiness, urging continuous strengthening of current cyber-defence during the transition to PQC. Financial Secretary Paul Chan highlighted the rapid growth of digital-asset custody and tokenised deposits, underscoring rising cryptographic risk.
The HKMA also announced a PQC toolkit co-developed with the Hong Kong University of Science and Technology and a series of workshops to build capability and explore responsible quantum-technology use.
Why It Matters: Security Implications for Hong Kong’s Financial Hub
If quantum computers capable of running Shor’s algorithm at scale materialise, they could decrypt historic transaction data and forge digital signatures that underpin payment networks, identity verification and asset tokenisation. A breach of cryptographic foundations could jeopardise both local banks and the global financial ecosystem that relies on Hong Kong-based settlement infrastructure.
What’s Next: Roadmap to Full Readiness by 2030
The HKMA will raise the QPI score through practical guidance, training and industry engagement. Key milestones include:
- Deployment of the PQC toolkit to help banks prioritise transition activities.
- Ongoing workshops to develop in-house expertise and address challenges such as larger key sizes and latency impacts on high-frequency trading.
- Collaboration with standards bodies (e.g., NIST) to align Hong Kong banks with emerging international PQC standards.
Targeting a score of 10 by 2030, the HKMA aims to ensure the banking sector can securely support its expanding tokenised-asset ecosystem and maintain confidence in the territory’s financial infrastructure.
