Quantum computing is a technology that, in the wrong hands, could disrupt today’s digital security systems.
In this regard, on January 7, 2025, the Israel Banking Authority sent a letter to banks and financial institutions, asking them to present their preparedness plans for quantum-based cyber threats within one year.
According to Calcalistech’s report, the message was direct. Although fully functional quantum computers do not yet exist, The financial system cannot wait for the encryption that supports it to be broken today.
Quantum processing power threatens to render obsolete current security algorithms that can solve things in seconds that are impossible with today’s computing.
This vulnerability directly affects cryptographic systems that ensure the confidentiality of financial, banking, national, and medical data, as well as cryptoasset networks such as Bitcoin.
Moshe Karako, a cybersecurity advisor to the Israeli government and financial institutions, said: “Quantum computers can open everything up.”
Karako explained that the real danger is psychological. Money deposited in banks is trustworthy.. If a large portion of the population tries to withdraw cash out of fear, the system could collapse even without an actual attack.
Breaking the Cybersecurity Rules
According to the aforementioned report, the demands of Israeli regulators mark a turning point.
Quantum computing is “no longer just a threat in the cyber world,” said Uzi Yaari, director of digital at Elad. “It changes all the rules of the game.”
According to his analysis, when quantum functions are involved, Current defense systems will fail And you have to employ completely different codes and encryption methods.
Yaari points out that the problem is not with the encryption itself, but with the infrastructure that supports it. Many banks operate on legacy systems. Old platform built on an outdated language A process that has accumulated over several decades.
In this context, complying with regulatory requirements is not enough. “There are two axes that have to move at the same time,” he said: responding to regulators; Modernize your core systemsfix important points or completely rewrite.
After two years, your system is no longer protected. I can’t wait. I should have started yesterday.
Uzi Yaari, director of digital at Elad, said:
Protecting current information from future quantum
Moshe Karako also highlighted the quantum threat. Not just technical matters, but also system matters..
The advisor also warned about less visible risks, so-called risks. “Collect them now and decipher them later.” As he explained, large amounts of encrypted information (financial, medical, security) has already been stolen and stored.
Currently they appear to be protected and useless, but as quantum computing matures they may become fully accessible. That’s where the damage begins Years before encryption was broken.
This problem is not limited to banks. It also affects communication systems that are currently considered secure, such as messaging and encrypted phone applications such as WhatsApp.
For example, the encryption they use, such as a cryptographic system called RSA, is part of the same chain of trust that supports electronic commerce, government, and global finance.
In that sense, the US National Institute of Standards and Technology (NIST) has already established protection mechanisms for quantum computing, as reported by CriptoNoticias.
Blockstream co-founder Adam Back proposed using a NIST-approved quantum-resistant digital signature algorithm. To protect your Bitcoin transactions.
For this reason, Karako emphasized that the first step is not to “solve the quantum,” but to understand what information exists, where it is encrypted, and by what external providers.
In response to Calcalistech, after the period ends on January 7, 2026, the Banking Supervision Authority stated: Entity has already submitted initial evaluation and compare it with emerging requirements and trends.
(Tag translation) Banking and insurance
