Hong Kong’s banking regulator has unveiled four flagship projects, including a quantum computing readiness index, to help the city’s lenders stay competitive and secure in the artificial intelligence era.
The Hong Kong Monetary Authority (HKMA) said the initiatives formed part of its new Fintech Promotion Blueprint, aimed at guiding responsible innovation and preparing the city’s banking sector for rapid technological change. The blueprint was announced on Tuesday in response to industry concerns about risks accompanying the adoption of advanced technologies.
“Computing equals productivity now,” said Arthur Yuen Kwok-hang, deputy chief executive of the HKMA. “But we can’t sacrifice security while making innovations.”
The four projects, which the HKMA will launch in the coming months, are Quantum Preparedness Index, New Risk Data Strategy, Fintech Cybersecurity Baseline, and Supporting Competency Development.
The quantum index comes as the technology is expected to solve complex problems within seconds, though in theory it may also undermine current encryption methods used for data protection and online authentication.
Although experts estimated it would take five to six years for quantum computing to reach the scale needed to break encryption, it was important to prepare now, said Carmen Chu Lap-kiu, executive director of banking supervision at the city’s de facto central bank.
Quantum computing is expected to solve complex problems, though in theory it may also undermine encryption methods used for data protection. Photo: Shutterstock
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