- The world is facing quantum risks
- Cryptocurrency is potentially at risk
- The UAE is making proactive preparations
No one can predict precisely when quantum computing will become mainstream, but the awareness of its immense capabilities is already influencing the cryptocurrency market.
In early July, the owners of eight dormant bitcoin wallets mobilized 80,000 bitcoin cash (BTC), equivalent to over $9 billion, to new wallets after years of inactivity. The subsequent sale of a fraction of this amount led to a 5 percent dip in bitcoin prices.
The motive behind this transfer is largely attributed to the potential threat quantum computing poses to the security of conventional cryptocurrency wallets. This could be an early indication of what’s ahead.
The ascent of quantum computing may challenge the cryptocurrency framework established by nations like the UAE.
BlackRock, the prominent US asset management firm, has cautioned that advancements in quantum computing could jeopardize the foundational security of bitcoin.
Fortunately, experts have informed AGBI that the UAE is already taking steps to prepare for this shift.
“The threat of quantum attacks is present today,” stated Kevin Bocek from cybersecurity firm CyberArk.
Adversaries could employ “harvest now, decrypt later” tactics: gathering inadequately secured data now and decrypting it—essentially breaking digital locks—once quantum computers become available, Bocek explained.
The mechanics of decryption are technical, but consider flipping a coin. While in the air, it’s neither heads nor tails, but rather a probability of both.
Classical computers operate with definite outcomes: binary codes represented in ones or zeros. In contrast, quantum computers handle the intermediate state of a coin toss. The “coin” can simultaneously represent both heads and tails, along with any combination. This fundamentally contrasts with existing computers and their security frameworks.
Quantum computers are capable of solving complex statistical problems. In 2024, a Google quantum computer executed a calculation in five minutes that would take most supercomputers longer than the age of the universe to resolve.
This presents significant consequences for digital assets, as most cryptocurrency wallets and currencies like bitcoin are secured with cryptographic keys that quantum computers could easily breach.
“The readiness for on-chain PQ [post-quantum] migration remains the weakest area across the board,” cautioned Jawad Ashraf, CEO of AI-driven blockchain firm Vanar Chain, indicating that organizations are ill-equipped to safeguard blockchain-stored assets against quantum threats.
“A credible quantum breakthrough would erode trust instantly, necessitate emergency migrations, and destabilize both domestic and global financial systems,” Ashraf said.
As of 2025, there are approximately 100 to 200 quantum computers operational worldwide, though McKinsey & Company anticipates that number will grow to 5,000 by 2030.
The UAE is relatively well-equipped for this transition.
“There is a high level of awareness at the policy level,” Ashraf noted.
The UAE’s sovereign digital asset, AE Coin, and its supporters function under a national framework that requires post-quantum cryptography for essential infrastructure.
The UAE’s 2024 Cryptography Executive Regulation specifies how organizations in the crypto space, like exchanges and coin providers, must secure themselves in a post-quantum landscape.
Further reading:
While Vara, Dubai’s regulatory authority for digital assets, hasn’t mandated quantum-secure security measures, it has been enhancing cybersecurity protocols.
The challenge lies in the uncertainty of when quantum computing will be fully operational. A Google quantum researcher cautioned in May that the resources required to breach commonly used encryption techniques have been overstated. However, some experts believe its arrival could be imminent.
This unpredictability has caused some smaller entities to overlook the issue, leaving their data susceptible to “harvest now, decrypt later” attacks.
“Taking proactive measures today with existing technology can mitigate this risk: transitioning to quantum-resistant cryptography addresses this concern,” advised CyberArk’s Bocek.
Source link
